RBS pushes Peacocks to the brink of administration RBS's unwillingness to prop up Peacocks is not just worrying for the retailer, which runs 700 shops, it is also of great concern for a number of high street names backed by the lender. A source close to the bank said: "Yes, RBS is owned by the taxpayer, but that means it has a responsibility to look after that money wisely. Should it throw good money at the sector, when we've seen how bad conditions are? Talks continued yesterday in Cardiff, where the company is headquartered and where Richard Kirk, the chief executive since 1996, is based. They are expected to continue today, but KPMG is being lined up as an administrator if no solution can be found within the next few days. If it were to collapse, Peacocks would be the the festive period's biggest high street casualty. The company, a value fashion chain which competes against Primark and New Look but which also sells childrenswear, has been hit by the downturn. It insists it is trading profitably, before interest payments are taken into account, and enjoyed a positive Christmas. However, since it was taken private in 2006 it has had a large amount of debt. Sources suggested debts now total £240m though some experts believe that figure could be significantly higher. Peacocks's debt is held by a syndicate of 15 lenders including RBS, which owns 17pc of the debt, and Barclays. A source close to the talks said RBS's stance was a surprise. It was a 180 degree turn, and it seemed to come from high up. An RBS spokesman said: "Each company restructure is judged on its own merits, but clearly the difficult conditions retailers face is an important factor. We have been and continue to be supportive of the company. New investors willing to inject sufficient capital could not be found. If further funds are required, then this is an issue for shareholders and for approval by a majority of the lenders. A spokesman for Barclays said: "At every stage Barclays has been willing to support the management in the restructuring." The company is hopeful of selling the Bon Marché chain, with Sun European Partners the most likely buyer. However, any sum that Peacocks receives for the business is likely to make only a modest dent in the debts. Peacocks was taken private in 2006, in a £420m deal backed by Goldman Sachs, Och-Ziff and Perry Capital, which remain the major shareholders.