Jobs loss fears as high street giant collapses
MORE than 200 people in Huddersfield are at risk of redundancy after Bonmarche collapsed on Friday.
The staff, who work at the clothing company’s huge headquarters at Grange Moor, are among 2,900 employees facing uncertain futures.
As well as its head office, Bonmarche has a store in New Street in Huddersfield town centre, one in Batley and one in Halifax.
Chief executive Helen Connolly has said Brexit had contributed significantly.
She said: “It is with deep regret and sadness that we have appointed administrators. Over the last 18 months, trading in our stores and market conditions on the high street have significantly worsened.
“The delay in Brexit has created negativities both in the global markets towards Britain and damaged consumer sentiment and retail footfall on the high street,” she said.
Tony Wright, joint administrator and partner at FRP, said: “Bonmarche 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 Bonmarche for sale and believe that there will be interest to take on the business.”
The directors placed the business in administration after a sustained period of ‘challenging trading conditions and cashflow pressure’, meaning the business was unable to meet financial obligations.
The administrators will keep Bonmarche stores open while looking into options for the business.
Earlier this year Peacocks boss Philip Day took control of the high street retailer with his Spectre investment vehicle. That investment has now been wiped out.
The deal valued the Yorkshire-based chain at around £5.7m - just five years ago the firm was worth nearly £100m.
A spokesperson for Spectre said: “We are disappointed with the result of our investment in Bonmarche, but our primary thought at this time is with the business employees and families.”
Bonmarche, which was founded in 1982, warned last in March that trading had deteriorated, adding that it expected to lose around £5m this year.
The business employs a total of 2,887 people, including 200 staff at its head office.
Connolly said: “Our first priority is to our colleagues and their families in the face of this difficult news. This is not the outcome we had hoped for and we will work with the administrators to do all it possibly can to protect as many jobs as possible and work towards finding a buyer for the business.”