Management submit buy-out proposal for Peacocks

An MBO bid has been submitted for Edinburgh Woollen Mill (EWM) Group's value fashion chain Peacock which, if successful, could save almost 5,000 jobs.

EWM head of ecommerce Josh Lowes has secured the backing of a private investor, Phoenix Wales, to make the bid which includes saving its stores and building on its digital business.

Based in Cardiff, Peacocks operates 470 stores and concessions in the UK and the bid proposes to keep all of its operations in South Wales.

FRP Advisory was appointed in November as administrator at Peacocks, which EWM itself had bought out of administration in 2012.

The MBO proposal is separate from any backing from the existing Peacocks structure and the EWM Group, which is owned by retail tycoon Philip Day.

The EWM Group has been hit hard by the pandemic due to a slump in tourism and the fact that older consumers have been reluctant to return to physical stores.

Its namesake brand has been placed into administration with the likely closure of all of its store, this week Bonmarche was placed into administration once more, while Jaeger is also in administration and seeking buyers.

Day was understood to be trying to secure a deal to enable him to retain control of Peacocks with the backing of US hedge fund Davidson Kempner.