Fashion retail chain Peacocks to be placed on the market or refinanced

Value fashion retailer Peacocks faces being placed on the market or being refinanced as its owners look to pocket a £200 million windfall.

A consortium, including Goldman Sachs, bought the chain in 2006 for £404 million, and was backed by £258 million of bank loans and £110 million of junior debt by Och-Ziff and Perry, Peacock's shareholders.

The group of investors, who own a 55 per cent holding between them, have approached several investment banks to assess a possible recapitalisation of the company.

It is thought that the clothing retailer has seen a massive increase in value since the purchase, and might now be worth over £600 million.

Immediate plans for the business include a new valuation, and to either swap part of its equity for more debt or to bring in new investors.

The management team, who own the remaining 45 per cent of Peacocks, allegedly aim to retain its holding and continue to run the company.

Peacocks started out as a family-run business that sold a wide variety of products in 1884 in Warrington. The retailer now specialises in selling fashionable women's, men's and childrenswear.

It trades from over 500 stores spread across the UK, and aims to open a further 50 stores in 2010 and 2011. Peacocks is also increasing its overseas presence, and currently operates from 73 franchised shops.

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