Bonmarché creditors doubt over payout

Bonmarché may not be able to payout its creditors. The British company Bonmarché, that hired FRP Advisory to handle its administration process in October, has stated that the company’s creditors may not recover much of the money they are owed. The company owes creditors about 23.9 million pounds. 

The advisory company stated in December that, “based on the assumptions made in the estimated outcome statement it is currently estimated that there may be sufficient funds available to make a distribution to unsecured creditors in due course.”

Bomarché chief executive officer left the company last December 

FRP Advisory stated that the distribution will be paid by a subsequently appointed liquidator and the costs of the liquidation cannot at this stage be estimated, as well as to estimate the level of distribution. Helen Connolly, chief executive officer left the company last December. The executive had joined Bonmarché in 2016 replacing Beth Butterwick.  

The company, that fell for administration last October, has 316 stores in the United Kingdom and 2,929 employees. The British company stated “this is not the outcome we had hoped for and we will work with the administrators to do all it possibly can to protect as many jobs as possible and secure its future going forward.”