21,000 jobs in danger as Peacocks and Jaeger owner faces collapse

Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with extra thab 21,000 jobs at risk. 

Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint directors at FRP Advisory if it fails to obtain a purchaser for some or all of the brand names. 

Mr Day’s chains, amassed in excess of the years and normally purchased from past administrations, have extra than one,000 branches involving them. 

The retailer has lodged a notice of intent to appoint directors with the Large Court, which is meant to prevent lenders this sort of as suppliers or landlords from professing any income for 10 times prior to a official appointment is produced. 

Main govt Steve Simpson mentioned that while he hoped to safe the very best long run for the company, there would inevitably be considerable career cuts and store closures. 

Bosses wrote to employees on Friday morning expressing that the countrywide and local lockdowns experienced damage income quite closely.

Even so, it mostly blamed a spat with suppliers in Bangladesh for its plight just after credit score insurers pulled deal with and remaining the business exposed.  

Credit insurance plan guards suppliers towards the risk of customers likely bust involving an order becoming placed and the payment becoming produced. When insurers cease or withdraw deal with, suppliers can demand payment up front, placing pressure on suppliers and their finances.