Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with far more thab 21,000 work at danger.
Edinburgh Woollen Mill (EWM), which also owns Austin Reed and Jacques Vert, is poised to appoint administrators at FRP Advisory if it fails to locate a customer for some or all of the brands.
Mr Day’s chains, amassed over the years and typically bought from previous administrations, have far more than 1,000 branches in between them.
The retailer has lodged a discover of intent to appoint administrators with the Substantial Court, which is meant to prevent collectors these kinds of as suppliers or landlords from professing any money for ten times prior to a official appointment is designed.
Chief government Steve Simpson explained that though he hoped to safe the ideal foreseeable future for the company, there would inevitably be important occupation cuts and keep closures.
Bosses wrote to personnel on Friday early morning saying that the countrywide and regional lockdowns experienced harm revenue incredibly heavily.
On the other hand, it mostly blamed a spat with suppliers in Bangladesh for its plight soon after credit score insurers pulled protect and left the business exposed.
Credit score insurance plan safeguards suppliers in opposition to the danger of buyers going bust in between an get becoming put and the payment becoming designed. When insurers halt or withdraw protect, suppliers can demand payment up entrance, placing strain on merchants and their funds.