Bonmarche on hunt for a buyer after calling in administrators
BONMARCHE appointed administrators yesterday afternoon as the brutal conditions on the high street claimed yet another victim.
The ailing over-50s fashion retailer, which employs almost 2,900 staff, has drafted in advisers at FRP to handle the process.
There will be no redundancies at this stage, with its 318 stores and concessions staying open, while it looks for a buyer.
Chief executive Helen Connolly said: “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 secure its future.
“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.”
Bonmarché, which is majority owned by retail tycoon Philip Day’s investment vehicle Spectre, also considered a refinancing deal and a company voluntary arrangement – a controversial form of insolvency to prevent companies from going bust.
“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,” Ms Connolly added.
FRP’S Tony Wright 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 brand has been struggling with a rise in day-today costs, such as business rates and higher wages, as well as the shift to online and increased competition.
Industry observers have also said the chain has become less relevant. Sales deteriorated last year, leading to a string of profit warnings.
The company floated on London’s Aim at 200p in 2013 and moved to a full listing two years later.
Separately, Monsoon Accessorise sank to a £22.5m pre-tax loss for the year to August 2018, from a £2.2m loss a year earlier.
Sales fell 4.6pc to £296.4m for the year. Monsoon is ploughing ahead with a rescue plan.