Women's clothing retailer Bonmarche, which fell into administration in October, has been set for rescue by its rival Peacocks.
Peacocks has been selected as the "preferred bidder" to rescue Bonmarche, which fell into administration last month. However, further negotiations will be conducted before the deal is finalized.
Despite the ongoing deal negotiation, the administrators from FRP Advisory announced that 30 Bonmarché stores are scheduled to shut down by December 11, putting up to 240 employees at risk. The remaining 285 stores are expected to continue operations.
The administrators mentioned that Peacocks is expected to purchase  the "vast majority" of these remaining stores. However, they pointed out: "The future of all remaining stores cannot be assured at this time and remain subject to negotiation between any future purchaser and landlords given the period of historical market difficulty on the High Street."
FRP Advisory added that 25 positions have already been made redundant in a number of head office and middle management roles.
A Peacocks spokesperson said: "We are working very hard to reach a deal that secures the future of the company and the greatest number of jobs. But given the unprecedented pressures the business continues to face, it is also important to recognize this cannot be assured at this time."
"We will now enter a period of advanced negotiations with the administrator and landlords to find a way forward that provides a sustainable, long-term future for the business," the spokesperson added.
Tony Wright, joint administrator and partner at FRP Advisory, argued: "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."
