Sale of department store falls through after ‘serious breaches’

The sale of iconic Derby department store Bennetts has fallen through after “serious breaches” of the sale agreement by the new owners.

It has emerged that on 27th August the joint administrators of Bennetts (Irongate) Limited (Bennetts) took back control of the Bennetts department store, including all of its assets.

A statement from administrator Bridgewood said: “This was a regrettable but necessary step, following serious breaches of the sale agreement and licence to occupy between the Joint Administrators and the new owners, London Sole Limited (London Sole).

“During the following 10 days the joint administrators have given London Sole every opportunity to rectify these breaches, however London Sole were either unable or unwilling to make the required payments. This left the Joint administrators with no option other than to confirm the termination of its agreements with London Sole.”

Bennetts will remain closed while the joint administrators seek to secure an alternative buyer for all or part of the Bennetts store.

Paul Mallatratt, joint administrator, said: “we are deeply concerned by this turn of events, which is entirely due to London Sole reneging on its contractual commitments to the joint administrators, and the consequences for customers, Bennetts staff and the creditors in the Administration are very serious. We are working hard to find an alternative solution for Bennetts, however the closing down of the store is now a very real possibility.”

A spokesperson for the Cathedral Quarter Business Improvement District (BID) said: “Bennetts has been an iconic businesses within the Cathedral Quarter and I am sure that this news will be met with disappointment by the staff, creditors, surrounding businesses and general public alike.

“We obviously hope that a positive outcome can be achieved and will continue to offer as much support to the administrators as we can in their bid to find a new buyer.”