HULFT BANNER
Subscribe to our e-newsletter
Follow us on Twitter
Privacy and cookies
Established 1996
Sunday 17 November 2019

LATEST NEWS 

Payments Awards 2019

Philip Day bids £5.7m for Bonmarché

Written by Peter Walker
02/04/19

Edinburgh Woollen Mill boss Philip Day has unconditionally offered £5.7 million to buy Bonmarché.

The women’s fashion retailer revealed expected losses of between £5 million and £6 million for the year ending 31 March, following an update in November which showed in-store like-for-likes down four per cent as the brand was hit by “weaker consumer sentiment and footfall”.

Day - who also owns Peacocks, Austin Reed and Jaegar - made the bid for Bonmarché as part of his Dubai-based investment vehicle Spectre, which holds more than 26 million shares, placing it above the 30 per cent threshold for a takeover approach.

A stock exchange statement explained that a complete a store-by-store profitability assessment would be undertaken, with the intention of identifying all current stores that “do not make an acceptable contribution to the performance of the business as a result of inappropriate rent levels, staffing levels, or other factors”.

Those stores identified as underperforming may be closed unless reduced rents, staff reductions or other cost-saving measures can be successfully implemented.

“As a result of its review, and based purely on publicly available information, Spectre expects a material reduction in headcount across Bonmarché,” it added.

Day also promised to examine internet fulfilment and digital marketing processes, with a view to reviewing the efficiency of handling, distribution, Click and Collect, returns handling processes and of the return on digital marketing spend.

Bonmarché has a footprint of over 300 stores and concessions across the UK and currently employs around 1,900 full-time staff.

Day added that he was “well positioned to provide advice, guidance and support to secure the long term future of the Bonmarché business, its stores and employees”.


Retail Payments Survey

Technology for Marketing

HULFT
Find out how HULFT can help you manage data, integration, supply chain automation and digital transformation across your retail enterprise.

Talking shop: retail technology solutions from Brother
Retail Systems editor Peter Walker sits down with Brother’s senior commercial client manager Jessica Stansfield to talk through the company’s solutions for retailers and hospitality businesses, what’s new in labelling technology, and the benefits of outsourcing printing.
Most read stories...
World Markets (15 minute+ time delay)