Redundancies after Peacocks sale
MORE than 50 shop workers across South West Wales have lost their jobs after the purchase of clothing chain Peacocks.
Staff in stores in Swansea, Llanelli and Carmarthen have been made redundant after Peacocks was bought out of administration by the Edinburgh Woollen Mill Group.
The deal will save 6,000 jobs across the UK but a total of 3,100 people will be made redundant including 13 staff at Swansea's Morfa Shopping Park store which has closed.
A total of 31 people have lost their job at the Peacocks stores in Llanelli's Parc Trostre and Llanelli Shopping Centre.
Nine shop workers have been made redundant following the closure of Peacocks at Lammas Street in Carmarthen.
Peacocks stores at Woodfield Street in Morriston, Oxford Street in Swansea, Station Road in Port Talbot and Queen Street in Neath will stay open and employing a total of 52 people.
Edinburgh Woollen Mill has acquired the Peacocks brand, 388 stores and concessions, as well as the business' headquarters and logistics functions in Wales.
A total of 224 stores have closed with immediate effect.
Joff Pope, joint administrator and associate partner at KPMG, said: "Today's deal ensures the continued trading of a well known name on the high street.
"While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs.
"Like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions and this, combined with a surplus of stores and unsustainable capital structure led to the business becoming financially unviable.
"However, a strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders, leading to today's successful sale."
Philip Day, chairman and chief executive of the Edinburgh Woollen Mill Group, said: "We do hope that there will be scope to save more jobs and stores from those being forced to close now due to performance issues and overhead pressures.
"As you can imagine, there will be a considerable amount of work to undertake over the next few months to stabilise the situation, turn this business around, get the supply chain moving again and excite the customers with great products."
First Minister Carwyn Jones said: "I welcome the fact that despite its recent difficulties Peacocks will continue to have a future and employ a large number of people.
"The retention of the HQ in Cardiff in particular is good news.
"However, we wait to see the full details of how this announcement will exactly affect employees of Peacocks and we will provide all the support we can to those who face losing their jobs."







3 Comments
by gorseboy
Wednesday, February 22 2012, 7:27PM
“Hope they stock Edinburgh Woollen Mill merchandise besides the inferior goods Peacocks sold.”
by Birchgrove
Wednesday, February 22 2012, 7:02PM
“Word of warning to the owners of all Peacocks store,,,,,lock and double lock and then bolt all windows doors and sewer openings and make sure you video it all to stop these sewer rats or so called squatters getting in......or better still leave a load of soap bars scattered around the empty stores,,its like moth balls to moths,,,,,they hate it.”
by BobEvans2011
Wednesday, February 22 2012, 6:05PM
“I dont realy see them keeping the Head Office or Warhouse other than in the short term. Edinburgh Woollen Mill Group came back into the bidding at the request of the administraters at the last minute when an agreement could not be reached with the one bidder that was left so they are not so far down the road with the reorganisation needed but you do not have two head offices the implication is they need time to absorb the business into their current head office. THe current Peacocks HO is also twice as big as the scaled back business needs and there will be a lot of duplication of functions.
The current Warehouse is also far to big so I would expect them to absorb it into their current supply chain and close is it just needs time to do this. there is no point in having two seperate supply chains and logistics”