Bonmarche collapses due to ‘challenging trading conditions’ putting 3,000 jobs at risk
Womenswear retailer Bonmarche has collapsed into administration putting 2,887 jobs at risk.
The high street brand with a target demographic of women over 50 was placed into administration on Friday by directors following a “sustained period of challenging trading conditions and cash flow pressure”.
Read more: WTO gives go-ahead for $7.5bn of US tariffs on EU goods
As a result the Wakefield-based company was unable to meet its financial obligations.
The firm employs 2,887 people at 318 stores across the UK, with 200 staff at its head office.
Tony Wright, Alastair Massey and Phil Pierce of FRP Advisory were appointed as joint administrators.
“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,” Wright said.
“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.”
In a statement administrators said: “All stores remain open and no redundancies have been made.”
Bonmarche fell into administration seven years ago before being bought in a rescue deal by private equity firm Sun European Partners.
Read more: Easyhotel struggles in the face of weakening consumer confidence
In June the firm recommended shareholders accept a previously rejected £5.7m takeover bid from Philip Day. Its shares fell by 22 per cent after the announcement.
A large number of stakeholders sold up to Day, the owner of the Edinburgh Woollen Mill chain, giving him a 95% ownership in the retailer.