Women’s fashion chain Bonmarché, which specialises in clothing for the over-50s, has appointed administrators, putting the future of the business in doubt.
The chain has five stores in North Wales including Bangor, Llandudno, Colwyn Bay, Rhyl and Wrexham and
employs over 2,800 people in 318 shops across the UK, they will remain open while a buyer is sought and there are no redundancies at this stage.
Bonmarché chief executive Helen Connolly said she had made the decision with “deep regret and sadness”, and blamed tough High Street trading conditions, and the Brexit delay.
“We have spent a number of months examining our business model and looking for alternatives. But we have been sadly forced to conclude that under the present terms of business, our model simply does not work,” she added.
She added the “the drawn-out Brexit process” had damaged sales.
“Without such a delay, it is feasible to believe that our issues would have been more manageable. Instead, it has only intensified the pressures,” she said.
Ms Connolly said the firm had considered a refinancing or a rescue deal, known as a company voluntary agreement (CVA) with its landlords and lenders.
This is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts and is often used as an opportunity to renegotiate rents.
However, she said the firm had concluded that neither option would “fundamentally change the core challenges facing the business”.
“We are sadly no longer in a position to demonstrate to our shareholders that the business can continue as a going concern,” she added.
The struggling retailer warned earlier this year that trading had deteriorated.
