Fashion chain Bonmarché is preparing to float on the London Stock Exchange in November. The retailer, which caters for women over 50, announced that it planned to sell shares on the alternative investment market (Aim) next month, telling investors it was ready for growth as the number of older women is set to rise.
Bonmarché is the latest high street name to turn to the stock market, with furniture store DFS and House of Fraser also understood to be seeking a listing, and the entrepreneur Clive Coombes attempting to bring back the Comet brand and float the chain of electrical goods stores on Aim, a junior LSE market.
The Bonmarché listing would signify a remarkable turnaround in fortunes for the Wakefield-based company, after it was sold with the loss of 1,400 jobs at the beginning of last year, as it became another victim of cutthroat competition on the high street.
The private equity group Sun European Partners, which also owns the women’s fashion chain Jacques Vert and the bedding retailer Dreams, bought the business from the Peacock Group in an agreement that allowed them to close more than 100 profitless Bonmarché stores.
Under its chief executive, Beth Butterwick, the tills have been ringing once more, with 13 per cent sales growth since 1 April to the end of September, compared with the same period last year. The retailer claims to have 1.8 million active members and 6.5 million people registered on its Bonus Club reward scheme.
As well as the overhaul of some of its 264 shops, the group is now searching for new locations and plans to open stores in garden centres as part of a new business arrangement with the Garden Centre Group.
Since investors Sun European Partners took over, the company has earned £9.1m on an income measure that counts earnings before interest, depreciation, tax and amortisation. Butterwick said she is confident the retailer can capitalise on its loyal customer base and the growing market for over 50s fashion.
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