Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/702/13580

From The Socialist newspaper, 25 January 2012

Financial vultures kill Peacocks

Dave Reid, Wales Socialist Party

249 workers have been shown the door at Peacocks' head office in Cardiff following the retail company going into administration. They were sacked as the administrators stripped down the company to make it as attractive as possible to potential buyers.

Peacocks is still a profitable company but couldn't afford to pay the interest on a loan its bosses took out with New York hedge funds to buy the company.

According to the Western Mail: "Peacocks has been burdened with a loan of 149 million that was taken out at a massive 17.18% interest rate when chief executive Richard Kirk led a management buy-out in 2006.

"It has been reported that the money is owed to two hedge funds, Och-Ziff and Perry Capital, the same New York hedge funds that bankrolled the bid by the US-based Glazer family for Manchester United.

"Yet the details are difficult to confirm, partly because a holding company called 'Hanson Number 2a', registered in the Cayman Islands, holds the Peacock Group's debt."

And the Royal Bank of Scotland (RBS), which was bailed out in 2008 and is still majority owned by the government, decided that even though Peacocks could afford to pay for further loans to keep it going, it would not extend its line of credit because it can make more money elsewhere. Basically it decided to pull the plug on hundreds of livelihoods.

On 12 January shares of RBS had gone up by 5.5% as a result of 3,500 job losses. John Hourican, head of RBS's investment bank, had been given 21.3 million shares which become due to him in April. According to the Financial Times their value rose by 250,00 as a result of the job cuts.

Less than a week later he shook his head at re-funding Peacocks' loan and the firm went into administration.

Cardiff workers were squeezed by off-shore hedge funds and a failed bank still largely owned by the government. Vince Cable, the Lib Dem business secretary, could have picked up the phone and ordered RBS to save their jobs but the government has a policy of not interfering in the bank that taxpayers, including Peacocks' workers, had bailed out. So workers at Peacocks helped bail out RBS but RBS would not return the favour.


Spot the similarity

La Senza, Peacocks, Bon Marche, Thomas Cook, Hawkins Bazaar, Barratts, and who can forget the one that started it all, Woolworths. The increasing number of high street shops facing liquidation seem to have something in common - price. The most expensive dress available at Peacocks costs 50, while the highest priced at Harrods would set you back 8,750.

But Harrods and similar luxury stores seem unaffected by dropping sales - perhaps because the rich still have plenty of cash to splash while the cuts in jobs and services mean people who were already struggling are having to cut back spending, even on the essentials.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 25 January 2012:


Anti-cuts campaign

Hard Times - but not for the 1%


Socialist Party editorial

The trade unions and Labour

Add your name to the TUSC petition

Trade Unionist and Socialist Coalition election conference


Socialist Party news and analysis

Public sector pensions: 'Coalition of the willing' gathering strength

Financial vultures kill Peacocks

Con-Demned to unemployment

Fight the Tories' Welfare Reform Bill

Victory against Dorries' abstinence education bill

Keep the racist EDL out of Leicester

Them & Us


Education

Haringey parents say: No to academies!

NUS calls national student walkout


Socialist Party feature

Balfour Beatty re-ballot: Vote to strike again

Sweetheart stitch-ups in the electrical industry: A spark's history of the Joint Industry Board

Exposed - the dirty world of the construction blacklist


International socialist news and analysis

Egypt - A year of revolution and counter-revolution


Socialist Party workplace news

Stepping up the action to defend pensions at Unilever

Defend Len Hockey: Outrageous attack on Whipps Cross hospital workers

Pontefract hospital: Army withdrawn - now kick out PFI!

Save Vine services

Llanelli: Save Prince Philip's A&E

Stop the Salford day centre closures

Kirklees parents say 'save our children's centres!'

Greenwich Unite members oppose cuts, privatisation and racism

Workplace news in brief


 

Home   |   The Socialist 25 January 2012   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Cardiff:

triangleTories scrap the NHS pay cap: now fight for real-terms pay rises!

triangleCardiff Socialist Party: Commemorating the 100th anniversary of the Russian Revolution

triangleCardiff East Socialist Party: Why you have to be Red to be Green

triangleCardiff East Socialist Party: Is equality for women possible under capitalism?

triangleCardiff Socialist Students confront 'Parasite' Jacob Rees-Mogg

RBS:

triangleFinancial hardship facing millions of cancer sufferers

triangleNHS v RBS

triangleButterfields victory: housing crisis can be beaten

Hedge funds:

triangleNHS SOS round-up

triangleHedge fund owners will never blush

Government:

triangleRoyal Mail bosses block strike - back postal workers

Reports and campaigns

Reports and campaigns

19/10/17

North West

Arriva North West bus drivers strike over pay

18/10/17

Democratic rights

Conference on state spies: who's watching who?

18/10/17

Leeds

Striking back against sackers' charter at Leeds Uni

18/10/17

PCS

PCS ballots members on the pay cap

18/10/17

Royal Mail

Royal Mail bosses block strike - back postal workers

18/10/17

Art

'Dazzling' Bad Art show points to socialist future

18/10/17

Council

Sheffield Labour council threatens peaceful protesters with prison

18/10/17

South West Wales

Hundreds turn out for rally aimed at removing west Wales Tory MP

18/10/17

NHS

Uprising to save the NHS!

18/10/17

Socialism

Can you donate to the Socialism 2017 appeal?

18/10/17

East London

No cuts - hands off King George A&E!

18/10/17

North London

North London hospital workers fight cuts and job losses

18/10/17

BAE

Nationalise to save jobs at BAE Systems

18/10/17

Schools

Schools "can't go any further" - stop the cuts: set deficit budgets now

18/10/17

Swansea

Socialist Students 'welcome' Hillary Clinton to Swansea

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle19 Oct Arriva North West bus drivers strike over pay

triangle18 Oct Russia, October 1917: When workers took power

triangle18 Oct Tories torn - bin them now

triangle13 Oct The end of the Tories?

triangle11 Oct Nasty party imploding...drive out the Tories

triangle11 Oct CWU fights court attempt to stop national strike

triangle11 Oct The fight against racial discrimination is tied to fighting against...

More ...

triangle19 Oct Waltham Forest Young Socialists: Deaths in police custody

triangle19 Oct Swansea Socialist Party: Spanish revolution 1936-37

triangle19 Oct Cardiff East Socialist Party: Is equality for women possible under capitalism?

triangle19 Oct Wirral Socialist Party: The October 1917 Russian Revolution

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2