Peacocks rescue hopes raised
06 February 2012 10:01
Hopes were raised at collapsed chain Peacocks today, after it was reported that a Pakistani billionaire was working on a bid to rescue the fashion chain from administration.
Peacocks, which has 563 stores and 48 concessions, along with parent company The Peacock Group, collapsed last month in the biggest retail failure since Woolworths, placing 7,500 jobs in jeopardy.
The Sunday Times said Alshair Fiyaz, who made his fortune in the textile industry and whose family wealth is estimated at £3 billion, is working with Danish investment fund Solstra Capital, which is expected to submit a second-round bid for Peacocks tomorrow.
Administrator KPMG recently said it had more than 100 conversations with potential buyers, but sources told the newspaper that earlier private equity interest had begun to wane, fuelling fears that the company will be liquidated.
Mr Fayaz has dabbled in retail property investment in Denmark but his main interests are in shipping and financial services. He is understood to be working with Peacocks' managing director Tim Bettley, and other members of its senior management team.
Despite strong trading, the company, owned by hedge funds Och-Ziff and Perry Capital, has suffered as its profit margins came under pressure from the frenzy of discounts on the high street being offered by retailers desperate to drum up trade. The retailer also racked up £750 million of borrowings.
KPMG has already announced 249 redundancies from Peacocks head office in Cardiff.
Fashion chain Bonmarche, which was part of the Peacock Group, was sold last month in a deal that will lead to 1,400 job losses and 160 store closures. Private equity firm Sun European Partners bought 230 stores and will continue to employ 2,400 staff.
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