The future of what is thought to be the oldest department store in the world is back in the balance after the sale of the business fell through.
Earlier this year, Bennetts, which opened its first shop in Iron Gate, Derby, in 1734, went into administration, appointing Bridgewood Financial Solutions as administrators.
In April, Bridgewood announced that a deal for the Bennetts name and assets at the Derby store had been agreed. At the time, the identity of the buyer was not disclosed.
But when the deal was completed, the buyer was revealed as London Sole, part of a group of companies owned by Charles James Associates whose other business interests include French Sole.
However, it has now emerged that the administrators took back control of the department store, including all of its assets, at the end of August.
In a statement, Bridgewood said: “This was a regrettable but necessary step, following serious breaches of the sale agreement and licence to occupy between the joint administrators and the new owners, London Sole.
“During the following 10 days the joint administrators have given London Sole every opportunity to rectify these breaches, however London Sole were either unable or unwilling to make the required payments.
“This left the joint administrators with no option other than to confirm the termination of its agreements with London Sole.
“Bennetts will remain closed while the joint administrators seek to secure an alternative buyer for all or part of the Bennetts store.”
As well as the Iron Gate store, Bennetts also ran a second store in Ashbourne. However, this store was not included in the original deal with London Sole and has since closed and been put up for sale.
Joint administrator Paul Mallatratt said: “We are deeply concerned by this turn of events, which is entirely due to London Sole reneging on its contractual commitments to the joint administrators, and the consequences for customers, Bennetts staff and the creditors in the administration are very serious.
“We are working hard to find an alternative solution for Bennetts, however the closing down of the store is now a very real possibility.”
In a statement, the Cathedral Quarter Business Improvement District (BID), where Bennetts’ Derby store is located, said: “Bennetts has been an iconic businesses within the Cathedral Quarter and I am sure that this news will be met with disappointment by the staff, creditors, surrounding businesses and general public alike.
“We obviously hope that a positive outcome can be achieved and will continue to offer as much support to the administrators as we can in their bid to find a new buyer.”
