Caerphilly’s Labour MP Wayne David and its AM Jeff Cuthbert have expressed “grave concern” that clothing chain Peacocks is threatened with administration.
Mr David said the closure of the company’s Caerphilly town would mean further problems for the economy of the area.
On Tuesday, Peacocks was granted ten days’ protection from its creditors to find a new investor or it will go into administration.
Mr David is liaising with Caerphilly AM Jeff Cuthbert and is working with his Labour colleagues from Wales in Westminster to put pressure on the UK Government to do all in its power to help the company.
All 26 Welsh Labour MPs have signed a letter to UK Business Secretary Vince Cable asking him to help the troubled Cardiff-based firm. The company employs 10,000 across the UK, with 400 at its head offices.
Wayne David said: “I understand that talks with the banks have so far proved to be unsuccessful. Given that the Government has put so much money into RBS in particular, I would hope that the Government will be able to exercise some leverage. I will also be making representations to the UK Business Secretary Vince Cable.”
A Department for Business, Innovation and Skills spokesperson said: “This is a worrying time for the individuals, families and communities affected by the news that Peacocks has served notice of its intention to go into administration.
“The government is taking action to help shops by extending small business rate relief, maintaining a town centre-first planning policy, scrapping rules which pushed up parking charges, and cutting National Insurance for employers.
“Earlier this month, Mary Portas published her review which has provided a clear vision on how we can create vibrant and diverse town centres and breathe life back into our high streets.
“The government will consider the recommendations carefully and will respond in detail in the spring on how we can take forward measures to support our local high streets and the retailers that play a vital role in our economy.”
The letter to Mr Cable states: “We would urge you to make immediate inquiries into the company’s current finances, trading status and ongoing relationship with RBS, a bank that is, as you know, 80% state owned.
“We believe that the difficulties currently being faced by Peacocks are, in part, due to the economic decisions that the coalition government has taken, in particular the decision to increase VAT, thereby reducing consumer demand and increasing costs for the retail sector.
“We call on you to recognise this fact and to urge the chancellor and your cabinet colleagues to implement a plan for growth that would restore consumer confidence and give a boost to our ailing high street stores, including Peacocks.”
Peacocks has stores in Caerphilly and Bargoed town centres, with many local people employed there and in the distribution centre at Nantgarw off the A470.
Jeff Cuthbert AM said: “The news about Peacocks does give cause for concern; however we must remember that the company is still in negotiations with its creditors about its debts and is actively looking for new investors.
“Peacocks is a profitable business so I’m surprised that some of its creditors like RBS – which is mainly owned by the taxpayer – haven’t been more accommodating in terms of its lending.
“What we need to do now is make sure our wholehearted support goes out to this Welsh company and its staff so that the effects of any uncertainty is minimised.
“I will be working closely with the Welsh Government and my colleague Wayne David MP to ensure that we get the best deal possible for Peacocks workers in Caerphilly and Bargoed. We are fully behind Peacocks staff and will be supporting them all the way.”