Campaign begins to save Peacocks
19 January 2012 10:15
MPs, retailers and the general public have joined calls to business secretary Vince Cable to help save the Peacocks clothing chain and the 10,000 jobs that its potential collapse puts at risk. The company went into administration last night, with professional services firm KPMG saying that all Peacocks stores remain open as it seeks to find a buyer for the business and that no redundancies have currently been made. Meanwhile, KPMG said Bonmarche, also owned by The Peacock Group, which employs 3,800 staff and operates some 394 stores, has not entered administration and a buyer is being sought for the business.
A petition to save the embattled retailer began online yesterday, with signatures currently at over 1,400 and rising. To sign the petition, please follow this link:
http://www.ipetitions.com/petition/save-peacocks-2/signatures
Welsh Labour MPs have also written a letter to Mr Cable, urging him to make "immediate inquiries into the company's current finances, trading status and ongoing relationship with RBS, a bank that is, as you know, 80% state owned."
The letter continues: "We believe that the difficulties currently being faced by Peacocks are, in part, due to the economic decisions that the coalition government has taken, in particular the decision to increase VAT, thereby reducing consumer demand and increasing costs for the retail sector.
"We call on you to recognise this fact and to urge the chancellor and your cabinet colleagues to implement a plan for growth that would restore consumer confidence and give a boost to our ailing high street stores, including Peacocks."
Meanwhile, Welsh Secretary Cheryl Gillan pledged to work to protect the "many jobs" at Peacocks but warned she would not make early or false promises. Mrs Gillan faced a barrage of questions about the Cardiff-based chain at Welsh Questions in the Commons.
Labour MP Kevin Brennan (Cardiff West) asked: "RBS are blaming a lack of investors for their decision to pull the plug on a deal to save Peacocks, threatening thousands of jobs.
"My constituents can't understand why they were expected to bail out RBS but RBS are refusing to help them in their time of need.
"What are you doing to talk to RBS about their responsibilities?"
Mrs Gillan replied: "The moment I heard about Peacocks, I discussed it with the Secretary of State for Business, Innovation and Skills (Vince Cable).
"I have the greatest of sympathy, I have shopped in Peacocks myself and I know how many jobs depend on Peacocks. I think it is important we explore every possibility.
"But I'm not going to stand at this Despatch Box and make any false promises. We are going to look at what we can do for Peacocks but it will involve the Welsh Government as you know."
Labour's Huw Irranca-Davies (Ogmore) followed up: "The worrying news over Peacocks hangs especially over the constituents of Mr Brennan where the headquarters stand.
"But the ramifications are felt right across the country and in my own constituency where many travel to work in these centres but also in retail centres. Will you directly intervene to keep these 10,000 vital jobs, not least as the jobless numbers are now rising inexorably in the UK, the economy is flatlining and consumer confidence is plummeting?"
Mrs Gillan answered: "You speak powerfully but you have been a minister in Government and know that direct intervention would not be appropriate until more investigations have been made into the reasons for this reported failure of Peacocks.
"As there are so many jobs depending on this, if there are any redundancies or job losses that come out from this, Jobcentre Plus would absolutely be there to provide individuals support.
"This Government and the Welsh Government and I'm sure all of us together will do what we can."
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