Hundreds of jobs have been axed and 20 Peacocks stores in the West Midlands  closed after the ailing fashion chain was sold out of administration.

A bleak day for the region’s retail sector was confirmed when the stores  were closed as part of the sale of Peacocks to Edinburgh Woollen Mill.

Across the UK, the deal will save 388 shops and more than 6,000 jobs but  administrators from KPMG said it had been forced to close 224 stores with  immediate effect, leading to 3,100 redundancies.

  Among the stores to close in the West Midlands are the branches in Birmingham  St Andrews, Redditch, Wolverhampton, West Bromwich, Merry Hill, Halesowen,  Worcester, Sutton Coldfield and Swadlincote, as well as two in Coventry.

In Shropshire, two stores in Telford and shops in Market Drayton, Whitchurch  and Oswestry are to close, along with those in Tunstall, Hanley and Stafford in  Staffordshire.

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.”

Edinburgh Woollen Mill, which has 380 stores, will keep the Cardiff  headquarters of Peacocks but KPMG said 16 jobs will go in the city.

Peacocks collapsed under a debt mountain last month in the biggest retail  failure since Woolworths, placing 7,500 jobs in jeopardy.

Edinburgh, which beat off Indian textile and clothing giant S Kumars  Nationwide, said it would attempt to save some of the stores and jobs being lost  today.

However, chief executive Philip Day added: “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.”

Edinburgh last year bought 33 of Jane Norman’s 94 stores out of  administration, saving some 400 jobs.

Fashion chain Bonmarche, which was part of the Peacock Group, was sold last  month in a deal that will lead to 1,400 job losses and 160 store closures.  Private equity firm Sun European Partners bought 230 stores and will continue to  employ 2,400 staff.

Privately-owned Edinburgh Woollen Mill, which is based in Langholm, Scotland,  is to take on 338 stores, 50 concessions and three distribution centres as part  of the deal. It said Barclays and Santander had helped fund the  acquisition.

KPMG had already announced 249 redundancies from Peacocks head office in  Cardiff. Combined with the 1,400 job losses at Bonmarche, the total number of  jobs lost in the failure of Peacocks is now about 4,750.

The chain, which was owned by hedge funds  Och-Ziff and Perry Capital, collapsed under its £240 million of net debt despite  strong trading.

Its profit  margins also came under pressure from the frenzy of discounts on the high street  as shoppers reined in spending. Peacocks can trace its history back to  Warrington, in Cheshire, in 1884 when Albert Frank Peacock founded Peacock’s  Penny Bazaar. It moved to Cardiff in 1940.

The business developed and expanded in the 1990s, floating on the London Stock Exchange in  1999. The Peacock Group acquired low-cost retailer Bonmarche in 2002.

The company delisted from the London Stock Exchange to become a  privately-owned business once again in 2006 and broke the 500 stores mark in  2008.

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