Bonmarché collapses into administration in grim week for retail

RSM Restructuring Advisory has been appointed as administrator to oversee next steps for Bonmarché, Retail Week can reveal.

Bonmarché is part of the Edinburgh Woollen Mill group where stablemates Jaeger, Peacocks and the eponymous chain have already been put into administration.

Bonmarché’s demise follows those of department store group Debenhams and Topshop owner Arcadia, as the pandemic piled pressure on retailers that were already struggling. 

RSM’s Damian Webb and Gordon Thomson were appointed as joint administrators of BM Retail Limited, which operates the 225-store Bonmarché business employing 1,600 people, on Monday. 

RSM said: “No redundancies or store closures have been made on appointment.”

Webb added: “Bonmarché remains an attractive brand with a loyal customer base. It is our intention to continue to trade while working closely with management to explore the options for the business. We will shortly be marketing the business for sale and based on the interest to date we anticipate there will be a number of interested parties.

”We would like to thank the Bonmarché staff for continuing to support the business during these challenging and uncertain times for those individuals personally.”

Bonmarché was acquired by EWM tycoon Philip Day following an earlier administration in October last year. The timing of its latest collapse, as in the case of Arcadia, means HMRC may miss out on claims from the retailer. New ‘crown preference’ rules came into force yesterday that would put HMRC ahead of other creditors.