FASHION retailer Peacocks has been saved in the island after the UK chain was bought out of administration by Edinburgh Woollen Mill.
On Thursday administrators KPMG announced Edinburgh Woollen Mill had bought the Peacocks brand, 388 stores and concessions.
Some 224 outlets were not included in the sale, but among the ones saved was the branch in the Strand Shopping Centre, in Douglas, and the concession in Shoprite’s Victoria Road branch, also in Douglas.
Making the announcement last week, Chris Laverty, one of the joint administrators at KPMG, said: ‘Like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions and this, combined with a surplus of stores and unsustainable capital structure led to the business becoming financially unviable.
‘However, a strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders, leading to today’s successful sale.’
The deal does not affect Bonmarché, which has had an outlet in Strand Street for almost four years, and employs nine staff, seven of whom are part-time.
There was hope that the Strand Street shop could survive when Bonmarché was acquired by private equity firm Sun European Partners in a £10 million deal.
Some 230 stores have been saved – but 160 more are facing closure, including the island’s.
In January, it was reported that the future of Peacocks and Bonmarché was uncertain after the stores’ owner was put into administration. It came after discussions with lenders broke down.
At the time Mike Carr, branch manager of Peacocks in the Strand Shopping Centre, said: ‘It’s quite a shock. We are sort of hopeful but are preparing ourselves for the worst.’
Peacocks has been located in the Strand Shopping Centre, since the centre opened. It employs 15 members of staff, part-time and full-time.
Mr Carr declined to comment on KPMG’s announcement.