Women’s fashion chain Bonmarche survives but 160 stores and 1,400 jobs go

BONMARCHE, the women’s fashion chain which was part of collapsed retailer Peacocks Group, will survive in a reduced form after being sold to a private equity group which plans to cut 1,400 jobs.

Sun European Partners, which is thought to have paid £10 million for the business in a pre-pack administration, said yesterday it would close about 160 of its 390 shops.

Bonmarche has 23 stores in Scotland, including an outlet in Perth which is one of just three that were not sold and have been confirmed for closure.

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Staff in other stores set for the axe were being told yesterday and the outlets are expected to shut in the near future, but Sun did not provide a list of all those facing closure.

The deal means the Bonmarche name will survive on the high street. The chain is one of the UK’s largest women’s-only “value” retailers and sells affordable clothing aimed at women over 45 years old. Sun will also take on Bonmarche’s head office in Wakefield, West Yorkshire.

Chris Laverty, joint administrator 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.”

Bonmarche was part of the Peacocks Group, which last week collapsed into administration under its £750m debt mountain in the biggest retail failure since Woolworths, placing 9,600 jobs in jeopardy.

But whereas administrators at KPMG were called in to take charge of the Peacocks chain, Bonmarche was kept out of administration to allow sale talks to continue.

The sale of Bonmarche will free up administrators to look for a buyer for the Peacocks chain, which has 563 stores and 48 concessions.

It is understood that numerous private equity firms, including Sun, and clothing firm Edinburgh Woollen Mill are interested in buying the chain, while Tesco is reported to be eyeing some of its stores.

The administrators, who have kept the shops open while they seek a buyer, last week made 249 staff at its head office in Cardiff redundant.

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