Welsh stores at risk as Bonmarché collapses into administration
BONMARCHé has appointed administrators in the hope of saving its 318 stores, 19 of which are in Wales.
The chain, which has stores in Bridgend, Cardiff, Swansea, and several other locations across Wales, appointed FRP Advisory as administrators on Friday to look for a new buyer.
There are no redundancies at this stage, with 2,900 jobs at risk, and stores will remain open when administrators look into options for the business.
This comes after the collapse of Thomas Cook. And 239 people lost their jobs when furniture supplier Triumph, based in Merthyr Tydfil, went into administration earlier this month.
Chief executive Helen Connolly said Brexit was a key factor in the firm’s failings.
She said: “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. These have compounded the challenges we were facing and without such a delay, it is feasible to believe that our issues would have been more manageable. Instead, it has only intensified the pressures.”
She added that trading and market conditions on the high street have significantly worsened over the last 18 months, admitting “it is with deep regret and sadness that we have appointed administrators.”
Tony Wright, joint administrator and partner at FRP, 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 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.
Tony Wright, joint administrator and partner at FRP, 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 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.
Earlier this year Peacocks boss Philip Day took control of the high street retailer with his his Spectre investment vehicle. That investment has now been wiped out.
The deal valued the Yorkshirebased 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 Bonmarché, but our primary thought at this time is with the business’ employees and families.”
Bonmarché, which was founded in 1982, warned last in March that trading had deteriorated, adding that it expected to lose around £5m this year.
The Wakefield-based business employs a total of 2,887 people, including 200 staff at its head office, and trades through 318 stores across the UK, online and by phone.
Ms Connolly said: “We would like to thank Spectre and their team of advisors for their advice, guidance and support over the last few months. We believe that if we had had an opportunity to work with the Spectre team closely at an earlier stage, another outcome would have been possible.
“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 that can secure its future going forward.”