Indian firm looks set to snap up stricken Peacocks business
15th February 2012

The Times newspaper reported on 14th February 2012 that Mumbai-based firm S Kumars Nationwide (SKNL) looks set to acquire the Peacocks chain of clothing stores that fell into administration in January 2012. SKNL is one of India's leading textile and apparel companies with expertise in multi-fiber manufacturing and in 2008 it snapped up the MK One brand marketed by Internacionale. Although administrators KPMG refused to comment on the report, Chris Laverty, joint administrator and restructuring partner said on 26th January 2012, "w have received huge interest from potential acquirers of Peacocks, following our appointment last week. We had over 100 conversations with interested parties looking at either acquiring the whole business or parts of the business in the first 48 hours alone; whilst the capital structure was not sustainable, the underlying business has a loyal customer base evidenced by strong sales levels in store since our appointment."

David McCorquodale, corporate finance partner at KPMG, added: "We are in discussions with both trade and financial investors considering the acquisition opportunity. What is clear is that the Peacocks brand and extensive geographic footprint remain attractive. Therefore, we are hopeful of finding a buyer for all or a substantial portion of the business on a going concern basis. We will move quickly to protect value and have set up data room facilities for bidders to review Peacocks' financials, with initial offers required in short order."

The Peacocks business operates around 563 stores and 48 concessions across Northern Ireland, Scotland, England and Wales and employed approximately 9,600 people. 249 head office staff were made redundant on 19th January 2012 but there have been no additional redundancies since then. The joint administrators are trading the company during the sales process and all stores continue to operate as usual.

About S Kumars Nationwide Ltd

The S. Kumars Group was established in 1948 by Abhayakumar Kasliwal and Shambhukumar Kasliwal, who built a textile distribution network, and followed it with textile manufacturing. On 28 September 1990, S Kumars was incorporated as a private limited company, and became a deemed Public Company with effect from 28 February 1991. The company manufactures and markets the famous Reid & Taylor brand in India and has extended its presence in multiple product categories from Fabrics to Apparels and Home Textiles.

In 2008, SKNL bought Internacionale, the company behind the MK One brand, and already it already retails international luxury brands such as Alfred Dunhill and Escada in India and owns the Reid and Taylor, Carmichael House and Belmonte brands. Its products are sold in over 30,000 outlets across the country. Bollywood megastar Amitabh Bachchan is among its brand ambassadors.

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