Fashion brand is put up for sale by administrators

The IP properties surrounding the fashion brand Bench have been put up for sale.

Two weeks ago, the iconic Manchester brand was forced to file for administration as a result of the woes on the high street.

And now the administrators BDO have put the firm’s IP portfolio up for sale. The administrators are convinced that the Bench brand still has bright fashion due to its popularity.

Intellectual property specialists Metis Partners have been taken on to help with the sale.

A spokesperson said: “For almost thirty years, Bench has occupied a central and iconic position on the high-street for fashion, streetwear and lifestyle products, and in 2011, the company generated circa £150 million in revenue.

“The company cites both recent difficulties in the UK retail market and a major logistics issue in 2016 as factors contributing to its current scenario.”

The spokesperson added: “Despite the Company’s current challenges, confidence exists that the Bench brand has continued potential for growth and could have a bright future with the right strategy.

“Bench is a robust international brand, with a proven track record in retail sales, wholesale, e-commerce and through international licensing agreements in Europe and North America.”

Bench was set up in Manchester in 1989 and employed 176 people in the UK and a further 170 in Germany.

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.

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.