The retailer Peacocks is the biggest company in Wales to have collapsed in recent years. There are not many firms with a headquarters in Wales with a turnover of more than £700m. A number of reasons have been cited for the failure, including the role of the Royal Bank of Scotland (RBS) during talks to restructure its debts. But the reality is that Peacocks was brought down by the deal that allowed a management buyout in 2006. The context is important here, in 2005 Peacocks was a plc and expanding strongly. A few years earlier it had bought the Yorkshire-based retailer Bonmarche, which had 350 outlets. There were already 418 Peacocks stores at the time. But the chief executive Richard Kirk felt it was not being taken seriously enough by investors in London and he led a management buy-out so the firm could expand at a faster rate. In order to do it, the company borrowed £460m. Heavily criticised The last official company accounts we have date from 2010, and the...
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