Cardiff-based fashion retailer Peacocks has been sold in a deal with Edinburgh Woollen Mill, saving 36 jobs in Caerphilly County Borough.
Administers KPMG have confirmed the three stores will remain open after it was announced that the company was to close 224 stores across the UK with 3,100 redundancies.
The distribution centre in Nantgarw is to also remain open for business.
The deal with Edinburgh Woollen Mill will save 388 shops and more than 6,000 jobs nationally.
Chris Laverty, joint administrator at KPMG, said: “Today’s deal ensures the continued trading of a well known name on the high street. While it is unfortunate that redundancies have been necessary, we are pleased that we have been able to preserve the majority of the business and jobs.
“Like many other retailers, Peacocks suffered from a decline in consumer spending due to the tough economic conditions and this, combined with a surplus of stores and unsustainable capital structure led to the business becoming financially unviable.
“However, a strong brand presence and loyal customer following meant that Peacocks attracted a great deal of interest from both trade and private equity bidders, leading to today’s successful sale. I would take this opportunity to thank the management team and staff for their continued assistance in very difficult circumstances; their support has been invaluable in securing today’s sale.”
Caerphilly AM Jeff Cuthbert said the saving of the Bargoed and Caerphilly stores was a “huge relief”.
He said: “This is absolutely brilliant news and a huge relief for residents, those employed in the two shops and distribution centre and the local economy. Closures or job losses would have really hit families in Caerphilly area hard and affected the great work that has already gone into the Bargoed town centre Regeneration project.
“However my heart goes out to other areas and employees which weren’t so fortunate. There will still be 224 stores closing and 3,100 job losses which is devastating for an already floundering economy, which the Tory-Liberal coalition are doing their best to wreck the recovery of.”
Edinburgh Woollen Mill, which has 380 stores, will keep the Cardiff headquarters of Peacocks. The company beat off Indian textile and clothing giant S Kumars Nationwide, said it would attempt to save some of the stores and jobs being lost.
Chief executive Philip Day said: “We look forward to working with our new colleagues to rebuild the business in what is a very tough economic environment for High Street retailers in the UK.
“As you can imagine, there will be a considerable amount of work to undertake over the next few months to stabilise the situation, turn this business around, get the supply chain moving again and excite the customers with great products.”
Secretary of State for Wales Cheryl Gillan has welcomed news of the sale.
She said: “I am pleased that a buyer has been found for Peacocks. This will give the company a sustainable way forward and thousands of jobs will be safeguarded. This buy-out signals a fresh start for the company and many of its employees, although sadly I understand there will be redundancies.
“The Government continues to focus on creating the right conditions for economic growth and I am confident that Wales remains a competitive place to do business.”
Fashion chain Bonmarche, which was part of the Peacock Group, was sold last month private equity firm Sun European Partners.