Last checked at 6 Apr 2021 17:16
Date: 6 April 2021
Frasers Group plc
("Frasers Group" or the "Company")
Statement regarding the "Rescue" of Peacocks
Frasers Group notes media reports regarding the purported sale of Peacocks Stores Limited (in Administration) ("Peacocks") to a so-called international consortium led by Steve Simpson, the former chief operating officer of Peacocks.
Frasers Group can confirm that it submitted an expression of interest in Peacocks but was repeatedly frustrated by FRP Advisory's unwillingness, as the Administrators of Peacocks, to engage substantively or to provide key financial information.
Frasers Group with its advisors actively participated in discussions with FRP Advisory and representatives of the secured creditor, The Edinburgh Woollen Mill (Group) Limited. However, at no point in the discussions were the secured creditor or the Joint Administrators prepared to allow Frasers Group the same access to key stakeholders and information as the purported purchaser was allowed.
The actions of the secured creditor and the Joint Administrators made it virtually impossible for Frasers Group or any other third party to provide a credible alternative to the purported sale to the connected party.
Since November, Frasers Group has repeatedly expressed its concerns in relation to the process. On March 27, advisors to Frasers Group sent a letter to FRP Advisory detailing those concerns which included insufficient access to: basic financial information; management information and projections; property details, stock information; retention of title stock and intellectual property. The letter noted that the All-Party Parliamentary Group is looking at the insolvency profession and stated that Frasers Group will fully assist by setting out its experience and concerns.
Throughout the process Frasers Group raised questions specifically around the rationale and information provided in relation to the assignment of Peacocks intellectual property to a third party in the early part of 2020 prior to the Joint Administrators being appointed. Evidence was provided to the Joint Administrators that undermined the authenticity of the assignment documentation provided to support the assignment which we strongly believe warrants further investigation by the Joint Administrators.
Details of the so-called "rescue" have not been made public, but the media reports suggest that the consideration was in the form of a deferred loan agreement which we believe would require the involvement and approval of Philip Day.
Ends.
Frasers Group plc T. 0344 245 9200
Tom Piper, Company Secretary E. investor.relations@frasers.group