High street carnage continues as fashion brand files for administration

The carnage on the high street is showing no sign of easing with yet another big name announcing major problems.

Fashion firm Bench, which was set up in Manchester in 1989, has announced it is filing for administration.

The move has put 176 jobs at risk in the UK and further 170 roles in the firm’s German operations are under threat.

The company has announced that its 20 UK stores and 15 German shops will stay open for trading in the short term.

Bench’s chief executive Barry Knight issued a statement after it was revealed the business was going into administration.

He said: “We have been provided with further capital by our owner on several occasions to invest in new stores and employees, but we weren’t able to get the company onto a sustainable economic footing.

“We faced a lot of headwind due to the devaluation of the British Pound, the competitiveness and the declining market in our fashion segment.

“Ultimately, it was not possible for us to generate further liquidity for the company, on either an equity or on a debt basis. As a result, we have no alternative but to go into administration.

“Our task now, together with the administrator, is to achieve the best possible outcome in this situation. Despite the company’s current challenges, we remain confident that the Bench brand can have a bright future.”

Bench made a £2.3m loss in 2016, according to accounts at Companies House, and it has yet to file accounts for the last 12 months.

Low consumer confidence and the rise of online shopping has created chaos in the retail sector.

A string of firms including Debenhams, House of Fraser, New Look and bargain retailers such as Poundworld have all had problems.

High profile collapses have included Toys R Us, Bargain Booze owners Constellation and Maplins.

The British Independent Retailers Association is calling on the government to support struggling retailers.

Chief executive Alan Hawkins said: “If I could give one message I would say sort out the rates – it’s not fair.

“It’s not as though the high street is finished, but we need some help quickly to make sure we have a rosier future.

“If we don’t find a way out of the current situation the Government is going to be left with the problem of what to do with these high streets that have nothing there.

“People say put libraries in and health centres, but the Government does not have the money to fill the gaps that would be left by independent shops.”

Shop Direct recently announced 2,000 jobs are to be axed in the Greater Manchester area as part of a reorganisation of its business.

The issue is being raised in the House of Commons today by Oldham MP Debbie Abrahams.

Mike Aylward, from the shopworkers union Usdaw, said: “Our members at Shop Direct are at the forefront of the effects of the introduction of new technology, as they face seeing their Greater Manchester workplace, employing nearly 2,000 workers, move to the East Midlands, employing nearly 500.

“So it is right that these issues are debated in Parliament and the Government is required to provide a response.

“Usdaw reps and officials are preparing for the start of a statutory period of meaningful consultation with the company, where we will interrogate the business case and seek alternatives to their devastating proposals.

“We welcome the assistance of local MPs and councillors, along with the Greater Manchester Mayor.

“We believe there is a role for the Government to intervene and support the staff facing redundancy.

“There are questions to be answered about what the ‘Northern Powerhouse’ actually means to working people in the North West.

“Our members will be listening carefully to what the Minister has to say.”