A CLOTHING retailer with stores in Tamworth has filed for protection from its creditors to allow it time to find a new investor, failing which it will go into administration.

The Peacock Group, which runs both the Peacocks and Bonmarché chains, is under threat saddled with debts of £240 million, with around 12,400 jobs at risk.

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

The Peacocks stores, which include an outlet at the Ankerside Shopping Centre in George Street, appear most at threat, with the store group saying talks with the group's main lenders, Royal Bank of Scotland and Barclays, to restructure the business have "concluded" and no agreement has been reached.

It did say discussions with "other potential investors are ongoing". In a statement on its Peacocks retail chain, The Peacock Group said: "To protect the business whilst discussions with such investors are progressed, the directors have filed a notice of Intention to Appoint an Administrator.

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

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

A statement on behalf of The Peacock Group said: "In order to provide protection for the business whilst this sale process completes, the board has filed a notice of Intention to Appoint an Administrator for the Bonmarché business."

Again existing management remain in place because an administrator has yet to be appointed, with the group reiterating the same issues it had with its leading lenders and that talks had failed.

There are 611 Peacocks stores and concessions in the UK and a further 117 worldwide including Russia and Bahrain. There are also 394 Bonmarché stores.

If the company could not reach a deal, it would lead to the largest loss of retail jobs since Woolworths faltered in 2008.