Bonmarche administration wipes out creditors’ £24m

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Bonmarche creditors administration Edinburgh Woollen Mill Philip Day
Business advisory firm FRP said in a report that it could not guarantee that unsecured creditors could get their cash back
// Bonmarche creditors owed £23.9m following administration
// Suppliers are owed £12.6m, and HMRC is owed £1.1m

Bonmarche’s creditors are unlikely to retrieve the £23.9 million they are owed, as there may not be enough cash to make any distributions.

The fashion retailer appointed business advisory firm FRP after falling into administration in October last year.

FRP said in a report that it could not guarantee that unsecured creditors could get their cash back.


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These include suppliers, which are owed £12.6 million, and HMRC, owed £1.1 million.

”Based on the assumptions made in the estimated outcome statement it is currently estimated that there may be sufficient funds available to make a distribution to unsecured creditors in due course,” FRP said in an administrators report published in December.

“This distribution will be paid by a subsequently appointed liquidator, the costs of the liquidation cannot at this stage be estimated and therefore it is not possible to estimate the level of distribution that may be made.”

Edinburgh Woollen Mill Group owner Philip Day bought Bonmarche in July in a cut-price £5.7 million deal, despite warnings from auditor PwC that it might not continue as a business.

Following Bonmarche’s administration, Peacocks – also owned by Day’s Edinburgh Woollen Mill Group – tabled a bid to buy the chain and rid it of its debts and rent obligations.

FRP named Peacocks as its preferred bidder.

Day provided a loan and credit facilities to Bonmarche in August in exchange for security over its assets, meaning any buyer would have had to repay that money.

Bonmarche operated from 316 stores and had employed 2919 staff at the time of its administration.

It has closed 11 underperforming stores since then.

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10 COMMENTS

  1. This is the only store that caters for all ages and sizes and the staff are always very helpful and pleasant please keep it going E.

  2. I love bon marche clothes shop i would miss it its the only clohes shop i buy clothes from good vaule good quality will be sqd whenshop closes down .

  3. Love their clothes and it is the only store where I can buy jeans to fit me. Would be absolutely gutted if it closed down

  4. Most of the clothes in my wardrobe come from Bon Marche and I don’t know where I would shop if the local store closes. The quality of the clothes is excellent and very good value for money. There is no one in the same sector of the market as M&S are too dear and Peacocks clothes are of an inferior quality.

  5. It’s not just where will you get your clothes from what about the staff. Who may lose their jobs and will struggle to pay their bills it’s not all about worrying about where to get your clothes if they close come on people

      • It seems my social media acc has been hacked and comments allegedly made by me on 10th January are not my opinions so please ignore and hoping to find out about the hack soon thank you

  6. Just to let everyone know on the 10th of January a comment allegedly from me was put on this page I have been told at the moment it seems my social media accounts have been hacked and I had no knowledge until today of this and it totally has nothing to do with me so please disregard the comment from 10th January thank you

  7. Staff at Port Talbot store are so helpful and are always welcoming even at this difficult time. Staff are approachable and always go the extra mile to make sure customers are happy. Hope this store will remain open for staff to continue their excellent service which I highly recommend as a valued customer.

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