Peacocks administrators agree deals with Poundland, Poundworld and Iceland
The administrators of Peacocks have negotiated deals on 30 stores that were not included in the sale of the business to Poundland, Poundworld and Iceland.
Richard Fleming, Chris Laverty, Ed Boyle and Joff Pope of KPMG were appointed as administrators to Peacocks in January, in what was the biggest retail failure of 2012, and in February agreed a deal to sell 224 of the stores to Edinburgh Woollen Mill.
KMPG has now announced that Poundland, Poundworld and Iceland have snapped up 30 of the remaining stores, which range from 4,000 to 20,000 sq ft.
KPMG is also in discussions with Edinburgh Woollen Mill regarding 17 former Peacocks stores. The administrators have surrendered the leases on a further 53 closed stores to landlords.
Mark Bayley, restructuring real estate director at KPMG, said: “We are actively marketing the remaining 124 stores, which continue to attract a high level of interest from a variety of goods and food operators.”
Peacocks had total group debt of more than £700m, including around £133m from a syndicate of senior lenders and more than £500m of mezzanine and junior facilities from other lenders.
He added: “Employees will be paid in full but, due to the severity of the indebtedness of the company, senior secured lenders are unlikely to make a full recovery and there will be a very small return to unsecured creditors. We continue to recover value were possible and, to this end, the assignment of leases of closed stores continues apace, as does the collection of international debtors.”