A former Edinburgh Woollen Mills Group executive has secured the approval of bankrupt Peacock‘s administrator to acquire the value-priced chain, with the financial backing of international investors.
The purchase price was not disclosed, and most of the backers are reportedly in Dubai, where former owner Sir Philip Day currently resides. Sky News reported on Monday that the purchase via the consortium led by EWM chief operating officer Steve Simpson, considered to be Day’s right-hand man, would save 200 of the 400 stores and 2,000 jobs.
Simpson controls Purepay Retail, a vehicle that has acquired the EWM and Bonmarche brands. Purepay, funded by the international consortium, will add Peacocks to its umbrella of brands, with Simpson taking over the existing management team. The Daily Mail reported that Simpson does not have a financial stake in Purepay.
Day will no longer have any direct involvement with the brands he used to own. But Day’s approval of the deal was required as he is the chain’s biggest creditor, after providing a loan to retailer. Day agreed to a deferred loan agreement, one that will see him getting repaid at some point down the road. Separately, The Daily Mail reported that Day will see some return on his investment in Peacocks because the consortium agreed to pay him an amount in installments “over the next few years.”
Unfortunately, unsecured creditors and landlords are expected to get nothing on their claims.