Peacocks chain could sell for £600m

THE owners of budget fashion chain Peacocks are understood to be lining it up for sale in a move that could value the business at around £600 million.

Shareholders, led by the private equity arm of Goldman Sachs, are said to be keen to capitalise on the boom in low-end retailers during the recession.

According to a Sunday newspaper report, a sale of the Cardiff-based retailer would mean a tidy profit for management, including chief executive Richard Kirk who has a 30 per cent stake. Other investors include the US hedge funds Och-Ziff and Perry Capital.

Peacocks, which also owns the Bonmarche discount chain, has been boosted by the success of a collaboration with the singer-turned-fashion designer Pearl Lowe.

Like-for-like sales rose 17 per cent over the Christmas period and the company said it was benefiting from its ability to react quickly to fashion trends.