3,000 jobs lost in shops deal but 6,000 saved

The chain has been bought by Edinburgh Woollen Mill, but administrators KPMG said it had been forced to close 224 stores with immediate effect, leading to 3,100 redundancies.

Chris Laverty, joint administrator at KPMG, said: “Today’s deal ensures the continued trading of a well-known name on the high street.

“While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs.”

Edinburgh Woollen Mill, which has 380 stores, will keep the Cardiff headquarters of Peacocks but 16 jobs will go in the city.

Peacocks collapsed under a debt mountain last month in the biggest retail failure since Woolworths.

Edinburgh, which beat off Indian textile and clothing giant S Kumars Nationwide to make the deal, said it would attempt to save some of the stores and jobs which are being lost.

However, chief executive Philip Day added: “As you can imagine, there will be a considerable amount of work to undertake over the next few months to stabilise the situation, turn this business around, get the supply chain moving again and excite the customers with great products.”

Edinburgh last year bought 33 of Jane Norman’s 94 stores out of administration, saving some 400 jobs.

High Street fashion chain Bonmarche, which was part of the Peacock Group, was sold last month in a deal that will lead to 1,400 job losses and 160 store closures.