The collapsed retail giant Edinburgh Woollen Mill has been saved in a deal that will protect 1,453 jobs and keep 246 stores from closing for good, administrators have confirmed.
The along with sister retailers Jaeger and Peacocks, owned by retail tycoon Philip Day.
Mr Day is understood to have lined up a series of international investors who will provide the cash it needs to continue trading.
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The news will provide a potential lifeline for hundreds of staff.
Administrators at FRP confirmed 246 stores will be saved by Purepay Retail, which is controlled by former owner Philip Day.
The new owner will operate under licence across both brands, saving 1,347 shop workers, 72 employees at head office and a further 34 jobs at the company’s Carlisle distribution centre.
However, 85 Edinburgh Woollen Mill and 34 Ponden Home stores have been permanently closed as part of the agreement.
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Another sister brand to EWM, fashion chain Peacocks, remains in administration.
On Monday, Marks & Spencer signed a deal to take over Jaeger. However, , so no jobs are expected to be saved.
Mr Day is behind the deal to rescue the retailer and lined up a series of international investors who will provide the cash it needs to continue trading.
It will see EWM continue to be controlled by Mr Day with new investors repaying him the money owed as a secured creditor.
Unsecured creditors including landlords and suppliers are unlikely to get back any money owed.
The deal will save brands Edinburgh Woollen Mill, Ponden Home and Bonmarche.
However, the deal will come too late for some. Around one third of the 2,571 employees have already been made redundant.
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Edinburgh Woollen Mill Group (EWM) became one of a string of retailers embarking on a major restructuring during the Covid-19 pandemic when it called in administrators in October.
remains in administration.
The high street has faced a double blow since coronavirus restrictions added to the pressure already being exerted by changing shopping habits as customers turn to online retail.
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