HUNDREDS of jobs in the Bristol area could be on the line after owners of the clothing chain Peacocks announced it is due to go into administration.

The fashion retailer is on the brink of collapse because discussions between The Peacock Group and lenders over the future of the group broke down.

There are 11 Peacocks shops in the Bristol area and the move is likely to threaten hundreds of jobs, though the company refused to tell the Evening Post the number of staff at its shops.

The Peacock Group also owns women's clothing shop Bonmarche – which has six outlets in the Bristol area – and is seeking a potential buyer for the business. But it will appoint an administrator until one can be found.

The company has been left in dire straits because it failed to reach an agreement with its banks, which include taxpayer-owned Royal Bank of Scotland and Barclays, during talks to restructure £240 million of its debts.

Peacocks, which has its head office in Cardiff, reportedly failed to persuade the banks to take a loss on the debt they are owed – although both said they had been supportive through discussions.

It is believed that new investors who were willing to put money into the company couldn't be found, despite sales over the Christmas period being up 17 per cent on 2010.

Peacocks will now go into administration within ten days unless investors come forward.

If the company goes under it will be the biggest collapse in the retail sector since the demise of Woolworths in 2008, and the latest blow to the employment market in Bristol.

Last week the Post revealed that 350 jobs could go in TV licensing after Capita announced it was closing its operation at the Pithay, a week after La Senza and Hawkins Bazaar also anounced closures.

The Peacocks Group employs more than 13,000 people in 700 shops in the UK and abroad – including 11 Peacocks shops in and around Bristol, in Hartcliffe, Broadmead, Bedminster, Bishopston, Emersons Green, Bradley Stoke, Yate, Portishead, Weston-super-Mare, Nailsea and Keynsham.

There are Bonmarche shops in Broadmead, Bedminster, Knowle, Yate, Radstock and Weston-super- Mare.

A statement on behalf of Peacocks said: "The board of The Peacock Group and its advisers have been discussing for some time the restructuring of the business with the group's lenders.

"Unfortunately these talks have now concluded and no agreement has been reached. However, discussions with other potential investors are ongoing.

"To protect the business whilst discussions with such investors are progressed, the directors of The Peacock Group have filed a notice of intention to appoint an administrator."