The fate of struggling retailer Peacocks could be secured in a pre-pack administration deal, according to reports in the Daily Telegraph.
The company’s chief executive, Richard Kirk, is understood to have gained the backing of an unidentified financial investor for his plan to buy out the firm and save its 1,300 jobs.
The company filed an intention to appoint administrators yesterday, which has to be carried out within 10 days. The Business Sale Report noted on Monday that the company had already been working with financial advisers from KMPG to review its situation, prior to the filing of its intention yesterday.
A spokesperson for Peacocks explained, “The Board of The Peacock Group and its advisers have been discussing for some time the restructuring of the business with the Group’s lenders.
“Unfortunately, these talks have now concluded and no agreement has been reached. However, discussions with other potential investors are ongoing. To protect the business whilst discussions with such investors are progressed, directors have filed a notice of intention to appoint an administrator.”
KPMG has also been working on the deal to arrange the sale of the company’s 394 nationwide Bon Marché branded stores.
Peacocks was in talks yesterday to discuss the company’s future which would require the restructuring of its £240 million debt pile. The company has some 11,000 staff employed around the UK and, if it collapsed, would be the largest business to fail since Woolworths failed four years ago.
