Edinburgh Woollen Mill will open at least 100 new stores over the course of the next two years, after profits came in at £71.3 million, up by more than a quarter for the year.
Edinburgh Woollen Mill is planning to expand its store portfolio after profits trebled following the purchase of Peacocks from administration.
It is reported that creditors have lost over £1 billion as a result of the 20 most significant financial collapses of retailers since the beginning of 2012. The debt illustrates the extent of the UK’s current economic crisis and the effect that the collapse of multiple major retail businesses is having on the British economy.
Over a year after clothing retailer Peacocks fell into administration in January 2012, it has been revealed that the company’s pension deficit is much greater than previously thought. Peacocks’ fall into administration resulted in the 9,600 jobs being put at risk. Although around 6000 of the retailer’s former employees employees were given jobs by Edinburgh Woollen Mill, who bought large parts of the business following their collapse, around 3000 were not so lucky and were made redundant.
Edinburgh Woollen Mill, who bought Peacocks out of administration last month for £23 million have said they will invest £120 million into the retailer over the next two years, as they look to restore confidence in the value apparel brand. Philip Day, chief executive and owner of Edinburgh Woollen Mill, told the BBC that they will be investing heavily into the supply chain, IT, infrastructure and stock, as well as re-opening 40 of the 234 stores that were forced to close as part of the administration process.
In an unexpected move, Edinburgh Woollen Mill has re-entered talks to snap up Peacocks.
Cardiff-based clothing retailer Peacocks has three potential bidders remaining after reports that Edinburgh Woollen Mill has pulled out.
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