Peacocks owner, Edinburgh Woollen Mill, is on the brink of collapse.
The group has appointed administrators in an attempt to rescue the struggling business, which has been hit by the “brutal” trading conditions.
Over 24,000 jobs are at risk if the owner of the Peacocks brand goes under.
Edinburgh Woollen Mill (EWM) has 1,100 stores for brands including Peacocks, Bonmarché and Austin Reed.
“Like every retailer, we have found the past seven months extremely difficult,” said chief executive, Steve Simpson.
“This situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.
“Traditionally, the group has always traded with strong cash reserves and a conservative balance sheet but these stories, the reduction in credit insurance – against the backdrop of the lockdown – and now this second wave of Covid-19 and all the local lockdowns, have made normal trading impossible.
“As directors, we have a duty to the business, our staff, our customers and our creditors to find the very best solution in this brutal environment.”
“So we have applied to court today for a short breathing space to assess our options before moving to appoint administrators,” Simpson added.
Edinburgh Woollen Mill is owned by billionaire businessman Philip Day, who has a £1.14bn fortune.
The group has hired FRP to review the business. A spokesperson from FRP said: “Our team is working with the directors of a number of the Edinburgh Woollen Mill Group subsidiaries to explore all options for the future of its retail brands, including Edinburgh Woollen Mill, Jaeger, Ponden Mill and Peacocks.”