- Vivian Hendriksz |
Struggling fashion retailer Bank has entered into administration, less than two months after it was sold off by JD Sports Fashion to restructuring specialist Hilco Capital last November.
Deloitte will over see the administration with partners Bill Dawson, Daniel Smith and Paul Meadows being named joint administrators for Bank, which currently runs 84 stores across the UK. Currently no redundancies have been made and all stores remain open for now, but over 1,550 jobs remain at risk.
"Bank has struggled in a highly competitive segment of the retail industry and has been loss-making for a number of years," said Dawson, partner at Deloitte's Restructuring Services practices. "A review of the business has determined that a solvent turnaround would not be possible and so its director has sought the appointment of joint administrators. All stores are open as normal, staff have been paid and additional sale discounts will be implemented later this week."
"The company has already been approached by several parties who have expressed an interest in the business and the administrators are trading as a going concern with a view to progressing these options and seeking further interested parties for some or all of the business."
Bank is known to have been struggling for quite some time now. In the year that ended February 1, 2014, the retailer reported a pre-tax loss of 8.1 million pounds, with gross assets of 51.7 million pounds at the time.