Spectre arrives to save Bonmarché from great losses. However, good number of jobs to be lost, fears company.
A significant number of job losses at Bonmarché are being expected based on its present state of turmoil. Edinburgh Woollen Mill owner Philip Day bought out the private equity of Sun Capital to take control of this struggling fashion chain, which can lead to a good number of job firing. Bonmarché has more than 300 stores and concessions and employs more than 1,900 people
A Dubai-based acquisition vehicle, Spectre, has declared to have paid £3m for 52.4% of Bonmarché’s shares at 11.445p each and offered to buy out the remaining shareholders at the same price, making the brand worthy of £5.7m. A significant decline is been observed in Bonmarché’s profitability, and Spectre being well positioned, considered to provide advice, guidance, and support to secure the long-term future of the Bonmarché business for its stores and the employees.
Spectre added that it did not have talks with Bonmarché’s management and has not inspected the retailer’s books. Though, it is quite sure that the brand could reduce costs by taking some serious measures. Steps such as, reducing the size of the head office, review staffing at its distribution center, closing the unprofitable stores, reducing ranges and renegotiating with the supplier terms and so on could have helped the brand to survive a little longer.
Philip Day, the owner of Spectre, has an efficacious track record within the retail sector, especially in such distressed situations to take care of the brand. Day who also owns Austin Reed, Jaeger, and Peacocks, said it will take three to four months following discussions with Bonmarché’s management. So that it can carry out a thorough review of the business which was likely to lead to a “material reduction in headcount across Bonmarché”.
The bid comes after Bonmarché issued the latest in a string of profits warnings earlier this month, declaring the brand is expected to make a loss of up to £6m this year. In December the company warned it would make a loss of £4m.