Billionaire Philip Day’s retail empire that includes Peacocks and Jaeger is on the brink of collapse, with additional thab 21,000 jobs at hazard.
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 consumer for some or all of the brand names.
Mr Day’s chains, amassed in excess of the years and usually purchased from past administrations, have additional than 1,000 branches in between them.
The retailer has lodged a observe of intent to appoint administrators with the Higher Court docket, which is intended to avert lenders this sort of as suppliers or landlords from saying any income for ten days just before a formal appointment is built.
Chief executive Steve Simpson mentioned that despite the fact that he hoped to safe the finest long term for the organization, there would inevitably be major career cuts and keep closures.
Bosses wrote to team on Friday early morning declaring that the national and local lockdowns experienced harm sales extremely greatly.
Having said that, it mostly blamed a spat with suppliers in Bangladesh for its plight right after credit insurers pulled include and still left the business exposed.
Credit rating insurance policies protects suppliers against the hazard of clients heading bust in between an purchase getting put and the payment getting built. When insurers stop or withdraw include, suppliers can desire payment up entrance, putting strain on retailers and their finances.