Almost 50 local jobs put at risk as clothing retailer Bank enters administration

Dozens of Teesside staff at fashion chain Bank are facing an uncertain start to 2015 after the company went into adminstration.

More than 1,500 jobs at the loss-making business have been put at risk - including 49 at three Teesside branches.

The Bury-based company, which operates 84 stores mainly in the Midlands, North of England and Scotland, was part of JD Sports Fashion until November.

It employs 20 at its Teesside Shopping Park, 14 at Middlesbrough’s Cleveland Shopping Centre and 15 in Darlington.

Deloitte was appointed as administrator on Monday after a review of the business determined that a solvent turnaround would not be possible.

All stores are open as normal and no redundancies have been made, while Deloitte considers potential interest in the business from several parties.

Bill Dawson, a partner in Deloitte’s restructuring services practice, said: “Bank has struggled in a highly competitive segment of the retail industry and has been loss-making for a number of years.”

He added that additional sale discounts will be implemented later this week.

Mr Dawson said: “The company has already been approached by several parties who have expressed an interest in the business and the administrators are trading as a going concern with a view to progressing these options and seeking further interested parties for some or all of the business.”

Bank was founded by Andy Scott - a former Macclesfield Town footballer - in 1994 and largely sells branded fashion items aimed at the youth market.

JD bought the chain from private equity owners Phoenix Equity Partners and management for £18.5m in 2007.

In November it disposed of the business to HMV owner Hilco, a retail turnaround business, under terms which were not disclosed.

JD’s fashion division, which includes the more successful Scotts brand, recently slumped to a half-year loss of £8.2m despite continued efforts to revive Bank, including through the appointment of a new management team.

Bank has been offering discounts of up to 70% as it attempts to attract shoppers in the face of fierce competition.

The company’s collapse comes a week after parcel courier firm City Link went into administration, costing the jobs of 2,400 workers.