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Bonmarche sold to private equity firm
Clothing chain Bonmarche, which is owned by Peacock Group, has been bought by private equity firm Sun European Partners for an undisclosed sum in a pre-pack deal.
Pre-pack deals, which is when a chain is placed into administration and immediately bought in a previously arranged deal, allow the buyers to take on the chain while writing off many of its debts.
Under the terms of the deal, Sun Europe will close around 160 out of 389 stores, resulting in the loss of approximately 1,000 jobs.
According to a statement from the administrator KPMG, a shop in Balham and a second in St Albans were in a consultation process before it was appointed and the two outlets closed as scheduled on Saturday.
A third store in Perth, which is not commercially viable, is also not part of the deal and the administrators will wind it down, resulting in seven redundancies.
Chris Laverty, joint administrator and restructuring partner at KPMG, said, “Given the hostile conditions on the high street, we’re pleased to have concluded a sale with Sun European Partners.
“The deal is a positive step forward in underscoring Bonmarche’s future.”
Sun’s vice-president, Matthias Gundlach, said it is liaising with current management to put "a sustainable growth programme" in place.
"Bonmarche is a great brand that operates in an attractive niche of the apparel sector that we know very well.
"Thanks to its strong range with a good value-for-money proposition and a unique in-store service experience, Bonmarche has a loyal customer base of regular repeat buyers,” he added.
A buyer is still being sought for Peacocks, which has debts of about £240 million.
Chris Laverty, Richard Fleming, Ed Boyle and Joff Pope of KPMG have been appointed joint administrators and are trying to sell the company, which has 611 stores and 49 concessions, as a going concern, but in the meantime Peacocks is trading as usual.
Last week, Past Times entered administration, as it too became a victim of the current economic climate.
And children’s clothes retailer Pumpkin Patch also collapsed, as cash-strapped shoppers cut back on their spending.
