Fashion outlet in administration
The future of another retailer hangs in the balance with East Kilbride jobs under threat.
Fashion business Bonmarché has been forced into administration – it’s the latest victim of the high street downturn after what bosses call a “sustained period of challenging trading conditions”.
It is the second time the retailer has fallen into administration in seven years, with 2900 jobs and 318 stores at risk across the country.
Stores, including their Princes Mall outlet, remain open as administrators FRP look for a buyer.
It has been mixed fortunes for East Kilbride town centre in recent times, with the closure of big names including the Next and the flagship Marks & Spencer in the Plaza due to close its doors.
But there has been new arrivals including the Fragrance Shop and bakers, Baynes.
However, Bonmarché could join the list of retail casualties.
Tony Wright, joint administrator and FRP Partner, said: “Bonmarché has been a staple on the UK high street for nearly three decades, but the persistent challenges facing retail have taken their toll and led to the administration.
“There is every sign that we can continue trading while we market Bonmarché for sale and believe that there will be interest to take on the business.”
The administrators also stressed that “all stores remain open and no redundancies have been made”.
Meanwhile, Bonmarché chief executive Helen Connolly said the business had examined other options to stay afloat .
“It is with deep regret and sadness that we have appointed administrators,” she said.
“Over the last 18 months, trading in our stores and market conditions on the high street have significantly worsened. This has overwhelmed the business and its financial position.
“The high street is going through a period of historic difficulty and we have been unable to weather the economic headwinds impacting the whole of the retail sector.
“We are sadly no longer in a position to demonstrate to our shareholders that the business can continue as a going concern.”
Bonmarché has recently struggled with rising costs, such as business rates and rising wages, as well as dwindling consumer spending and footfall on UK high streets.
East Kilbride MSP Linda Fabiani said: “This must be a deeply worrying time for staff as administrators assess all options to find a future for the company. It would be a real shame to lose this store from the town – I know town centre management will assist in any way they can.”
A spokesman for EK, East Kilbride said: “The situation at Bonmarché is clearly concerning.
“A decision has not been taken about the future of the business and as such stores across the UK, including the outlet in EK, are continuing to trade.”