The store is one of 338 UK stores which have been saved from closure after a takeover was agreed with Edinburgh Woollen Mill.
Administrators KPMG took control of the retailer in January after it failed to restructure part of its £750 million debt.
Today’s deal means 6,000 jobs across the UK are safeguarded. But 224 Peacocks stores have ceased trading with immediate effect, with a loss of 3,100 jobs.
A spokesman for Peacocks in Gainsborough said staff had not yet been told the news, and therefore could not comment.