A CLOTHING retailer with stores in Tamworth has gone into administration, placing 9,600 jobs under threat.

The Peacock Group announced it has appointed administrators KPMG LLP for its Peacocks business, with debts of £240 million.

Despite making an operating profit of £66.5 million in the last financial year, interest on debt repayments has meant the retailer has struggled.

The Peacocks stores, which includes an outlet in Ankerside Shopping Centre, could be faced with closure after discussions with the main lenders broke down.

In a statement, chief executive Richard Kirk said: "Peacocks is a brand with great heritage, and it is with deep sadness that we have been left with no other option but to place the business into administration.

"This is a hugely sad development for all of our stakeholders.

"I would like to take this opportunity to thank all colleagues for their hard work and dedication."

The outlook appeared a little rosier at the group's Bonmarché business, which has an outlet in Middle Entry, as the board confirmed it was in "advanced and exclusive discussions" with a potential purchaser.

A statement on behalf of The Peacock Group relating to Bonmarché said: "The board has filed a notice of Intention to Appoint an Administrator for the Bonmarché business."

Existing management remains in place right now.

There are 611 Peacocks stores and 49 concessions in the UK, and a further 117 worldwide, including in Russia and Bahrain.

If Peacocks does close, it would lead to the largest loss of retail jobs since Woolworths faltered in 2008.