Fashion Retailer ‘Bank’ Enters Administration
Written by: Keith Tully
Reviewed: Monday 5th January, 2015
The New Year has brought grim news in the world of retail as Bank, the well-known fashion chain headquartered in Greater Manchester, has fallen into administration.
The high-street retailer, which has 84 stores and 1,555 employees across the UK, recorded a loss of £8.1m in the year ending February 1, 2014
In its statement, Deloitte partner and joint administrator Bill Dawson said: “Bank has struggled in a highly competitive segment of the retail industry and has been loss-making for a number of years.
"A review of the business has determined that a solvent turnaround would not be possible."
The administrators will continue trading Bank as a going concern with a view to finding interested parties for some or all of the business.
Mr Dawson added that the company had already been approached by several parties who had expressed an interest in the business.
Deloitte said all stores were open as usual and staff had been paid.
The administration news comes just six weeks after the chain was sold by JD Sports to a subsidiary of Hilco, the specialist retail investor.
It is understood that Hilco appointed a chief restructuring officer to try to draw up a turnaround plan for Bank, but could not find a solution. Hilco did not buy the secured debt on Bank, so it will be low on the list of creditors eligible for a payout from the administration.
Author
Keith Tully
Partner
Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
- How to manage company cash flow problems
- Advice on dealing with HMRC
- Understanding rescue and closure options
- And much more...
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
- Helping you advise insolvent clients
- Spotting signs of client distress
- Exploring business rescue options
- And much more...
