Bank Fashion is the latest casualty in the world of fashion. This loss making retail clothing chain of stores has collapsed.
Clothing retail chain bank fashion has collapse. The company that sold garments made by multiple brands in. Its stores all across England and Scotland has crashed. Following Christmas sales that were dominated by discounts and a phenomenal increase in online sales. It is interesting to note that this clothing chain was bought by Hillock.
A private firm dealing in equities, only two months ago. For those who do not know, Hillock is an investment company that is also trying to revive the fortunes of entertainment company HMV.
Bank becomes the first casualty of 2015. Its crash puts future of nearly 1550 employees in jeopardy. There were 84 stores of the company operating in different parts of the country.
JD Sports owned bank fashion till November last year. However, it wash its hands from this chain after years of losses. In the last financial year alone, Bank reported a loss of £8.1m.
Financial experts believe that Bank will the first of a series of collapses that will take place this year. Turnaround specialist Hillock purchase this retail chain of stores hoping to achieve a revival of fortunes.
Hillock even appoint a specialist to draw a plan for a turnaround. But all efforts to revive the company fell flat. As no solution could be found to revive the fortunes of Bank. Hillock finally call in administrators. Deloitte, the international accounting firm, will try to dispose ban fashion as an ongoing concern.
Bank will continue to operate as usual and all its employees will continue to work. They will also receive their salaries. Additional discounts will offer to customers to generate higher sales.
Bank is making heavy losses for a number of years. Now because of a highly competitive market and the trend of online purchases. Deloitte said that it has approached by a few parties interest in outright purchase of bank fashion.
There are several companies that evince interest in the purchase of this loss making retail clothing chain. According to Bill Dawson, who is a joint administrator.
Deloitte is trying to secure a good deal for the company. The company compensate for some of the losses. Dawson also add that a review of the business conclude that it was not possible to achieve solvent turnaround.
This is the reason administrators have been appointed to try to sell the company. There is some hope for the employees of the company as several companies are interested in buying Bank.
It was way back in 2007 when bank fashion was purchased by J D Sports for a massive amount of £18.5m. At that time, Bank sold nearly a hundred top brands such as AX Paris, Lipsy, and Adidas.
Bank target teenagers and young adults. But its sales continued to plummet because of changing taste of the clientele and increasing unemployment among the youth.
With increasing number of people resorting to buying online, it gradually became very difficult for bank fashion to survive in the fashion market.