Future of big name Burton store in the balance

It could be saved by another high street name

The future of a big name Burton store still remains up in the air as we head towards the festive period.

A question mark hangs in the balance over the future of Burton's Bonmarché store, which is based in The Octagon shopping centre. It has been under threat for the last couple of months after the national firm went into administration.

The firm was placed in administration by directors following a period of "challenging trading conditions and cash flow pressure", resulting in the business being unable to meet financial obligations, reports The Mirror.

The joint administrators of the women's clothing retailer have said 30 "under performing and unsustainable" stores will shut by Wednesday, December 11. It has not yet been announced which stores will close.

This will see about 240 staff potentially made redundant.

According to administrators the future of all remaining stores "cannot be assured at this time", with it still subject to negotiations between new owners and landlords.

Partner at FRP Advisory Tony Wright said: "We deeply regret that, as part of the administration process, 30 stores will close and staff may be made redundant

"We will be working with the Redundancy Payments Office to support the affected employees."

Hope remains for the remaining 285 stores in the Bonmarché portfolio across the country, as administrators have said they have picked Peacocks as the preferred bidder for the rest of the business.

Mr Wright added: "We have now begun negotiations with Peacocks on a going concern basis and aim to complete a transaction that will maximise returns for creditors, but also provide the best opportunity to keep the retailer open and protect the greatest number of jobs."

Administrators have said they received "numerous offers" for all or parts of the business during the process.

The deal with Peacocks will now be subject to further due diligence and negotiations with landlords being being finalised.

Mr Wright said: "There is still a lot more work to do before we can secure the future of the business.

"Whilst we are optimistic that a transaction can be completed, ultimately, it will depend on ongoing negotiations between our preferred bidder and landlords on market rents and there remains a risk that the business could cease to trade."

Bonmarché, which was founded in 1982, warned last in March that trading had deteriorated, adding that it expected to lose around £5million this year.

Before entering administration the Wakefield-based business employed a total of 2,887 people, including 200 staff at its head office, and was trading through 318 stores across the UK, online and by phone.