Uncertainty: Peacocks in East street, Barking

Two fashion shops in Barking and Dagenham could be closed, resulting in a possible loss of jobs.

Peacocks, the 611-store chain, moved to appoint an administrator on Monday after being left with £750million of debt.

Its stores in the borough, in East Street, Barking, and the Mall shopping centre in Heathway, Dagenham, could shut their doors.

The East Street store has 11 employees.

The budget chain is one of the biggest firms which could go bust since Woolworths in 2008. Media reports indicate that KPMG could be appointed as Peacocks’ administrators.

A Peacocks spokesman said on Monday: “The board of the Peacock group and its advisers have been discussing for some time the restructuring of the business with the group’s lenders.

“Unfortunately these talks have now concluded and no agreement has been reached. However, discussions with other potential investors are ongoing.

“To protect the business whilst discussions with such investors are progressed, the directors of the Peacock group have filed a notice of intention to appoint an administrator.

“Existing management remain in place as an administrator has not been appointed.”

Unemployment stood at 2.6million in December and new figures are set to be published today (Wednesday).