News

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23 Jan 2012

DLA Piper in Bonmarché rescue

Press Release

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Sun European Partners, LLP ("Sun European Partners"), the European adviser to Sun Capital Partners, Inc., has today announced that one of its affiliates has acquired the Bonmarché value fashion chain from the administrators of Bonmarché Limited, KPMG, for an undisclosed sum.

Lawyers from DLA Piper's Corporate and Restructuring teams advised Sun European Partners on the acquisition.

The acquisition by an affiliate of Sun European Partners allows the Bonmarché business to continue trading, saving over 2,300 jobs across the UK. The business filed notice of intention to appoint administrators on 16 January 2012.

Richard Obank, Restructuring partner in DLA Piper's Leeds office and John Gallon, partner in the Corporate team, together co-led the acquisition alongside Sun European Partners.

Richard Obank said: "acting under very tight time pressures following the collapse of last minute rescue talks, we managed to complete this deal, so enabling the Bonmarché business to remain in operation. Yet again, this demonstrates the commitment of Sun European Partners to invest in UK retailers by providing working capital, saving jobs and supply chains and building value for the future."

John Gallon added: "there have been a number of reported casualties on the UK high street in recent weeks. However, despite the on-going challenges faced by the retail sector, we brought this deal to a close quickly and effectively to ensure that Bonmarché is in a position to continue operating. The acquisition is great news for the business, providing the financial and commercial commitment it needs to move forward and recover."

Paul Daccus, managing director at Sun European Partners, commented: "the speed of action and quality of advice provided by DLA Piper was critical for the successful execution of this deal and underlines the continued strength of Yorkshire as a centre of legal excellence."

This latest transaction completes a trio of deals by the Leeds office of DLA Piper on behalf of affiliates of Sun European Partners, saving a further two retail brands in the UK. This includes the acquisition of American Golf, which completed on 19 January 2012, in addition to the takeover of Jacques Vert plc, which completed at the start of the year.

Sun European Partners has extensive retail and branded retail experience and counts among its affiliated portfolio companies a number of other leading businesses including V&D, the largest department store chain in The Netherlands; DBApparel, a market leader in the design, manufacture and distribution of branded intimate apparel; and Scotch & Soda, a designer, marketer, wholesaler and retailer of contemporary casual apparel.

In the United States, Sun Capital affiliates have invested in The Limited, a women’s specialty apparel and accessories retailer; Hanna Andersson, a retailer of distinctive children’s clothing and Gerber Childrenswear, a leading marketer of children’s apparel.