Closing down signs have appeared in the windows of two national stores in Newton Abbot.

Both Edinburgh Woollen Mill and discount fashion chain Peacocks in Courtenay Street are displaying the signs which comes after last week’s announcement that the Edinburgh Woollen Mill Group, which owns Peacocks and Jaeger, was close to collapse.

Senior management contacted staff last week warning them that the national and local lockdowns had hit sales very heavily.

Said EWM chief executive Steve Simpson: ‘Like every retailer, we have found the past seven months extremely difficult.

‘The situation has grown worse in recent weeks as we have had to deal with a series of false rumours about our payments and trading which have impacted our credit insurance.

“Traditionally, EWM has always traded with strong cash reserves and a conservative balance sheet, but these stories, the reduction in credit insurance, against the backdrop of the lockdown and now this second wave of Covid-19, and all the local lockdowns, have made normal trading impossible.

‘I would like to thank all our staff for their amazing efforts during this time and also our customers who have remained so loyal and committed to our brands.’

All stores will continue trading and further details will be announced in due course, the company added, but significant changes are expected.