2:45pm Wednesday 22nd February 2012
© Press Association 2014
More than 3,000 jobs are to go after ailing fashion chain Peacocks was sold out of administration.
The deal with Edinburgh Woollen Mill will save 388 shops and more than 6,000 jobs but administrators from KPMG said it had been forced to close 224 stores with immediate effect, leading to 3,100 redundancies.
Chris Laverty, joint administrator at KPMG, said the 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."
Edinburgh Woollen Mill, which has 380 stores, will keep the Cardiff headquarters of Peacocks but KPMG said 16 jobs will go in the city.
Peacocks collapsed under a debt mountain last month in the biggest retail failure since Woolworths, placing 7,500 jobs in jeopardy.
Edinburgh, which beat off Indian textile and clothing giant S Kumars Nationwide, said it would attempt to save some of the stores and jobs being lost today.
However, chief executive Philip Day added: "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."
Edinburgh last year bought 33 of Jane Norman's 94 stores out of administration, saving some 400 jobs.
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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