Staff at the Huddersfield branch of Bank are among 1,500 workers at risk of losing their jobs after the fashion chain went into administration last night.
The loss-making Bury-based retailer, which employs 12 people at its store at Kingsgate and has 83 other outlets – mainly in the Midlands, North of England and Scotland – is in the hands of administrators from accountancy firm Deloitte after a review of the business determined that efforts to turn around the business as a going concern would not be possible.
All stores are open as normal and no redundancies have been made while Deloitte considers potential interest in the business from several parties.
Bill Dawson, a partner in Deloitte’s restructuring services practice, said: “Bank has struggled in a highly competitive segment of the retail industry and has been loss-making for a number of years.”
He added that additional sale discounts will be implemented later this week. The shops have been selling stock with up to 70% off.
Mr Dawson said: “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 was founded by Andy Scott, a former Macclesfield Town footballer, in 1994 and largely sells branded fashion items aimed at the youth market.
JD Sports Fashions bought the chain from private equity owners Phoenix Equity Partners and management for £18.5m in 2007. In November last year, it disposed of the business to HMV owner Hilco, a retail turnaround business, under terms which were not disclosed.
JD’s fashion division, which includes the more successful Scotts brand, recently slumped to a half-year loss of £8.2m despite continued efforts to revive Bank – including through the appointment of a new management team.
Bank has been offering discounts of up to 70% as it attempts to attract shoppers in the face of fierce competition.
The company’s collapse comes a week after parcel courier firm City Link went into administration, costing the jobs of 2,400 workers.
