News

Bench stores at risk after falling into administration

News

Anna Durkie

01 May 2018

Retail

Fashion retailer Bench’s 20 UK stores could face closure after filing for administration.

The casual clothing brand has filed an application to appoint administrators, putting 176 jobs at risk.

The retailer also has 15 stores in Austria, Germany and the Netherlands.

Its UK portfolio is based in designer outlet villages, covering 32,500 sq ft.

It is believed to be the first administration to directly affect this sector, as previous CVAs and store closures have been isolated to the high street, retail parks or shopping centres.

The insolvency will also affect its operations in Europe, where its head office and the 15 stores total 21,430 sq ft.

At present there has been no announcement on staff cuts or store closures.

In a statement, the business cited difficulties in the UK retail market, the weak pound and a “major logistics issue” in 2016 as the main drivers behind the decision.

Bench chief executive Barry Knight said: “Everyone at Bench has worked tirelessly to achieve the turnaround of the business.

“We have been provided with further capital by our owner on several occasions to invest in new stores and employees, but we weren’t able to get the company on to a sustainable economic footing.

“We faced a lot of headwind due to the devaluation of the British pound, the competitiveness and the declining market in our fashion segment.

“Ultimately, it was not possible for us to generate further liquidity for the company, on either an equity or on a debt basis. As a result, we have no alternative but to go into administration.

“Our task now, together with the administrator, is to achieve the best possible outcome in this situation.

“Despite the company’s current challenges, we remain confident that the Bench brand can have a bright future.

“The brand is marketable in the UK, Germany and internationally as demonstrated by three successful licence agreements we have entered into.”

Bench was founded in Manchester. Its parent company, Americana International, was bought by German private equity investor Emeram Capital in 2014.

Fashion retailer Bench’s 20 UK stores could face closure after filing for administration. The casual clothing brand has filed an application to appoint administrators, putting 176 jobs at risk. The retailer also has 15 stores in Austria, Germany and the Netherlands. Its UK portfolio is based in designer outlet villages, covering 32,500 sq ft. It is believed to be the first administration to directly affect this sector, as previous CVAs and store closures have been isolated to the high street, retail parks or shopping centres. The insolvency will also affect its operations in Europe, where its head office and the 15 stores total 21,430 sq ft. At present there has been no announcement on staff cuts or store closures. In a statement, the business cited difficulties in the UK retail market, the weak pound and a “major logistics issue” in 2016 as the main drivers behind the decision. Bench chief executive Barry Knight said: “Everyone at Bench has worked tirelessly to achieve the turnaround of the business. “We have been provided with further capital by our owner on several occasions to invest in new stores and employees, but we weren’t able to get the company on to a sustainable economic footing. “We faced a lot of headwind due to the devaluation of the British pound, the competitiveness and the declining market in our fashion segment. “Ultimately, it was not possible for us to generate further liquidity for the company, on either an equity or on a debt basis. As a result, we have no alternative but to go into administration. “Our task now, together with the administrator, is to achieve the best possible outcome in this situation. “Despite the company’s current challenges, we remain confident that the Bench brand can have a bright future. “The brand is marketable in the UK, Germany and internationally as demonstrated by three successful licence agreements we have entered into.” Bench was founded in Manchester. Its parent company, Americana International, was bought by German private equity investor Emeram Capital in 2014.