Bonmarché tumbles into administration placing thousands of jobs at risk

The ailing fashion retailer has drafted in advisers FRP to handle the administration process, which puts approximately 2,900 jobs at risk.

Boss Helen Connolly said that the business had examined other options to stay afloat, including refinancing or a possible company voluntary arrangement (CVA) but decided that these options wouldn’t “fundamentally change the core challenges facing the business”.

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. This has overwhelmed the business and its financial position.

“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.

“We have spent a number of months examining our business model and looking for alternatives. But we have been sadly forced to conclude that under the present terms of business, our model simply does not work. We have examined other options, including that of a CVA or refinancing, but do not believe these options will fundamentally change the core challenges facing the business.

“We are sadly no longer in a position to demonstrate to our shareholders that the business can continue as a going concern.”

Bonmarché, which was majority owned by retail tycoon Philip Day’s investment vehicle Spectre, will continue to trade from its estate of 318 stores as administrators search for a buyer.

FRP Advisory partner 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.”

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.”

Bonmarché is the latest in a string of high street retailers that have collapsed this year in the face of a perfect storm of spiralling business rates, increased rents, depressed footfall figures, stagnant consumer spending and increased ecommerce penetration.