Bonmarché creditors owed £24m
A report from FRP, administrators to Bonmarché, has warned creditors they are unlikely to get much of the £23.9 million the collapsed clothing chain owes them.
Bonmarché was placed into administration in October, just three months after its takeover by retail tycoon Philip Day in July. The Wakefield-based business blamed a sustained period of challenging trading conditions and cashflow pressure for its woes, which meant it was unable to meet its financial obligations as they were due.
FRP said nine parties have expressed interest in making a firm for parts or the entirety of the fashion brand, and Peacocks, part of Day’s Edinburgh Woollen Mill Group, has been named as preferred bidder.
A potential sale to Peacocks could allow Bonmarché to raise significant funds to pay back unsecured creditors, however, FRP said it could not guarantee there would be enough cash to pay off all debts. Suppliers are owed £12.6 million and HMRC, £1.1 million, according to the Sunday Times.
Philip Day, worth £1.2 billion, has acquired several distressed fashion brands in recent times, including Austin Reed, Jane Norman and Jaeger, through his Edinburgh Woollen Mill Group.
He added Bonmarché to that list in July, after his company Spectre Holdings secured 93% of shares in the womenswear retailer.
Bonmarché had over 300 stores and concessions across the UK before it fell into administration. About underperforming 11 stores have closed since then.
Copyright © 2023 FashionNetwork.com All rights reserved.