Is it the end of the road for Day’s empire including Peacocks in Stornoway?
That’s the feeling of some industry insiders who say the business tycoon was far too slow to react to changing shopping habits, with the announcement today that the retail brands have been placed in administration.
The fashion chains owner, Edinburgh Woollen Mill Group has been unable to find a buyer for both businesses, despite receiving a temporary moratorium from the High Court holding the administration order at bay while discussions were ongoing.
It is believed that 4700 jobs and 500 shops are at serious risk of closure with wholesale redundancies, including Peacocks Stornoway concession within the town’s Co-op Store.
EWM Group are still in talks with potential buyers, saying: “In recent weeks we have had constructive discussions with a number of potential buyers for Peacocks and Jaeger.
“As directors we have taken the desperately difficult decision to place both brands into administration while those talks continue.”
Peacocks, a Cardiff-based business has 423 stores with 4,369 staff, while Jaeger has 76 stores and 347 employees.
Some Peacocks stores had already started to close their doors following the announcement by EWM Group on October 15.
Day’s Bonmarche business is unaffected by the insolvency and continues to trade as it was purchased by the billionaire using a different investment tool.
Nobody was available at the Stornoway branch for comment, and the Gazette was referred to administrators FRP Advisory.