1,400 job losses and 160 store closures in Bonmarché deal

Bonmarché, the fashion chain which was part of collapsed retailer Peacocks Group, has been sold in a deal that will lead to 1,400 job losses and 160 store closures.

Private equity firm Sun European Partners has bought the women's clothing retailer out of administration in a so-called pre-pack deal for an undisclosed sum.

Sun, which bought the entire chain apart from three stores, has said it will continue to run 230 stores but will close about 160.

The store closures mean it will continue to employ about 2,400 of the chain's 3,800 strong workforce.

The staff in stores set for the axe are being told and the outlets are expected to shut in the near future.

Bonmarché has a store in the Wheatsheaf Shopping Centre in Rochdale. The company said it was too early to release a list of sites to be closed.

Bonmarché, founded in 1982, was part of the Peacocks Group, which last week collapsed into administration.

But whereas administrators at KPMG were called in to take charge of the Peacocks chain, Bonmarché was kept out of administration to allow sale talks to continue.

The deal means the Bonmarché name will survive on the high street, albeit with fewer stores.

Chris Laverty, joint administrator at KPMG, said: "Given the hostile conditions on the high street, we're pleased to have concluded a sale with Sun European Partners. The deal is a positive step forward in underscoring Bonmarché's future."