Bonmarché to close 30 stores as Peacocks flies to the rescue

Philip Day’s retailer Peacocks is set to take over troubled clothing rival Bonmarché, while 30 store closures have been earmarked before Christmas. The deal is subject to negotiations by the bidder with landlords. FRP Advisory, Bonmarché’s administrators, chose Peacocks as the preferred bidder for the business after receiving “numerous” offers. As part of the administration process, 30 underperforming stores will be closed by 11 December. The 285 remaining stores will continue to trade, while the performance of the business is kept under review. The vast majority of open stores are expected to be part of a deal from the bidder. However, FRP said the future of all remaining stores “cannot be assured at this time and remain subject to negotiation between any future purchaser and landlords”, given the “market difficulty on the high street”. Tony Wright, joint administrator and partner at FRP Advisory, said: “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. “There is still a lot more work to do before we can secure the future of the business. While we are optimistic that a transaction can be completed, ultimately, it will depend on ongoing negotiations between our preferred bidder and landlords on market rents and there remains a risk that the business could cease to trade.” Peacocks is owned by Philip Day’s Edinburgh Woollen Mill Group. If the takeover progresses it would mark something of a return for Bonmarché, which was previously part of Peacocks Group before the latter collapsed in 2012. Bonmarché was bought by private equity firm Sun European Partners that year, while Peacocks was sold to EWM. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette