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:

triangleRough sleeping crisis: make homes, not arrests

triangleCardiff East Socialist Party: Socialism in the USA

triangleCardiff East Socialist Party: Catalonia, Scotland and Wales

triangleCardiff West Socialist Party: How do Marxists analyse the world?

triangleCaerphilly Socialist Party: Are we heading for an era of war?

RBS:

triangleRBS to sack 1,000: nationalise the banks

triangleFinancial hardship facing millions of cancer sufferers

triangleNHS v RBS

Hedge funds:

triangleNHS SOS round-up

triangleHedge fund owners will never blush

Government:

triangle110 years ago: massacre at Santa Maria school in Chile - commemorate 21 December 1907

Reports and campaigns

Reports and campaigns

13/12/17

Woolwich

Support the Crossrail Woolwich walkout

13/12/17

Devon

Totnes MP uses coffin controversy to distract from brutal NHS cuts

13/12/17

Miners

Tory plan to hold dinner at coal mining museum defeated

13/12/17

Bradford

Bradford campaign to save children's services launched

13/12/17

Housing

Six months on - still no justice for Grenfell

13/12/17

Fracking

Movement growing against fracking giant Ineos

13/12/17

South London

South London health bosses' cover-up

13/12/17

Blacklisting

Unite day of action against blacklisting

13/12/17

Brighton

Brighton victory

13/12/17

Newham

Newham anti-academies strikes

13/12/17

Tamil Solidarity

Tamil Solidarity and Refugee Rights activists meeting

7/12/17

Blacklisting

Unite protest against blacklisting

7/12/17

RMT

Anti-DOO lobby of Liverpool's transport committee

6/12/17

Donald Trump

Mobilise to stop bigoted billionaire Donald Trump's state visit to Britain

6/12/17

Transport

Arriva bus strikers stand firm

triangleMore Reports and campaigns articles...


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

triangle13 Dec Support the Crossrail Woolwich walkout

triangle8 Dec Local government pay: fight for the 5% claim, fully funded

triangle6 Dec Strikers rally in Liverpool

triangle6 Dec Corbyn's Labour can defeat Tories with socialist programme

triangle5 Dec Victory at Glenfield shows people power can save our NHS

triangle5 Dec Labour council Blairites deselected

triangle30 Nov Victory: Glenfield Children's Heart Centre saved!

More ...

triangle13 Dec Caerphilly Socialist Party: Are we heading for an era of war?

triangle14 Dec Wakefield Socialist Party: Universal Credit - the Tories' latest assault on the poor

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

More ...

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

Archive

Archives:

December 2017

November 2017

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