Philip Day’s Peacocks nears deal to buy Bonmarche out of administration
Womenswear retailer Bonmarche is close to being bought out of administration by rival firm Peacocks, in a deal that could see 30 stores close before Christmas.
Peacocks, which is owned by billionaire businessman Philip Day, has been named the preferred bidder for the embattled retailer, administrator FRP Advisory said this morning.
However, negotiations are ongoing and a deal is not definite.
Read more: Bonmarche collapses due to challenging trading conditions
Day, the owner of the Edinburgh Woollen Mill Group, was previously the majority shareholder in Bonmarche through separate holding company Spectre and lost more than £5.5m when it collapsed.
Administrators said 30 “underperforming” stores will be closed by 11 December, putting high street jobs at risk.
In total, 25 head office and middle management roles were made redundant following the retailer’s collapse into administration last month.
The company’s 285 remaining stores will continue to trade and the “vast majority” of those branches are expected to be part of the deal with Peacocks if it goes ahead.
FRP Advisory partner Tony Wright said: ” “After a robust marketing process for Bonmarche, the business attracted a range of bids.
“We have now begun advanced negotiations with Peacocks on a going concern basis and aim to complete a transaction that will maximise returns for creditors, but also provide the best opportunity to keep the retailer open and protect the greatest number of jobs.”
Bonmarche entered administration in October citing a “sustained period of challenging trading conditions and cash flow pressure”.
A spokesperson for Peacocks said: “We are working very hard to reach a deal that secures the future of the company and the greatest number of jobs.
“But given the unprecedented pressures the business continues to face, it is also important to recognise this cannot be assured at this time.”