SALES staff on Teesside are facing an uncertain future amid fears two major clothing retailers could fall into administration.
Fashion store Peacocks, which has seven branches on Teesside, announced plans today to bring in the administrators, after discussions with lenders broke down.
A potential buyer is being sought for Bon Marche, which is owned by Peacocks, and also has five stores on Teesside.
Meanwhile gift retailer Past Times has fallen into administration. The company’s Middlesbrough branch closed before the move took place.
A spokesperson for Peacocks, which employs a combined 11,000 staff in the UK, said: “The Board of The Peacock Group and its advisers have been discussing for some time the restructuring of the business with the Group’s lenders.
“Unfortunately, these talks have now concluded and no agreement has been reached. However, discussions with other potential investors are ongoing.
“To protect the business whilst discussions with such investors are progressed, directors have filed a notice of intention to appoint an administrator.”
Existing management, he added, will remain in place as an administrator has not been appointed.
Past Times administrators KPMG confirmed 507 staff were made redundant before the company fell into administration.
A further 67 job losses were announced when the administrators were appointed.
A spokesperson said the loss-making high street business was a casualty of difficult trading conditions for the sector.