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RBS opts out of saving UK apparel retailer Peacocks
19 Jan '12
2 min read
The Royal Bank of Scotland (RBS) has withdrawn from the talks to rescue UK's retail fashion clothing chain Peacocks, putting around 13,000 jobs on stake.
Peacocks started in 1884 as a 'penny bazaar' and now operates over 700 outlets in the UK and abroad.
Withdrawal of the RBS from negotiations has compelled the retail chain to declare that it would place itself under administration if it does not get new investors within the next 10 days.
RBS withdrew from the talks with the directors of the retail firm after not agreeing to settle the retailer's debts against a stake in the business.
The retailer was trying to agree on new terms for £ 240 million of its £ 600 million debt. Peacocks owes over £ 100 million each to the RBS and Barclays.
While RBS has opted to withdraw from talks aimed at reworking the debt, Barclays has shown its readiness to support the retailer's revival, mainly swayed by the encouraging trading figures that the retail chain has posted over the past some time.
Peacocks is soon likely to close a deal for sale of its Bonmarché arm, which operates 200 stores with around 3,000 employees. However, efforts to find a buyer for rest of the business has not yet been successful, but Peacocks board members are still negotiating the same with potential buyers.
Several high street ventures have failed in recent times including Focus DIY and lingerie group La Senza. However, the fall of Peacocks would be the biggest retail collapse after the closure of Woolworths three years back.
Peacocks started in 1884 as a 'penny bazaar' and now operates over 700 outlets in the UK and abroad.
Withdrawal of the RBS from negotiations has compelled the retail chain to declare that it would place itself under administration if it does not get new investors within the next 10 days.
RBS withdrew from the talks with the directors of the retail firm after not agreeing to settle the retailer's debts against a stake in the business.
The retailer was trying to agree on new terms for £ 240 million of its £ 600 million debt. Peacocks owes over £ 100 million each to the RBS and Barclays.
While RBS has opted to withdraw from talks aimed at reworking the debt, Barclays has shown its readiness to support the retailer's revival, mainly swayed by the encouraging trading figures that the retail chain has posted over the past some time.
Peacocks is soon likely to close a deal for sale of its Bonmarché arm, which operates 200 stores with around 3,000 employees. However, efforts to find a buyer for rest of the business has not yet been successful, but Peacocks board members are still negotiating the same with potential buyers.
Several high street ventures have failed in recent times including Focus DIY and lingerie group La Senza. However, the fall of Peacocks would be the biggest retail collapse after the closure of Woolworths three years back.
Fibre2fashion News Desk - India
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