Peacock taken private for £410m

US hedge funds have teamed with Goldman Sachs to invest in the management buyout of the UK budget clothing retailer.

UK retail group Peacock has been taken private through a £404 million (€595 million; $714 million) management buyout.

US hedge funds Perry Capital and Och-Ziff have invested in the deal alongside Goldman Sachs. According to the Financial Times, Perry Capital and Och-Ziff have each provided £70 million, with a further £28 million from Goldman Sachs.

Former Peacock chairman John Lovering has invested £9.2 million in the buyout through his investment vehicle, Echelon Partners.

Following completion, the executive directors – chief executive Richard Kirk, chief financial officer Keith Bryant, and operations director Neil Burns – will own around 44 percent of the equity. Other members of management will hold around two percent, while the balance will be held by Och-Ziff, Perry Capital, Echelon and Goldman Sachs.

Peacock owns the Peacocks, Bonmarche and Fragrance Shop chains. Founded in 1882, the Cardiff-based firm has more than 700 stores across the UK and reported turnover for the year ended 31 March 2005 of £548.2 million.