"Challenging with a capital C" - Base Menswear enters administration blaming middle-market squeeze and excessive rates
The squeeze in middle-market menswear and excessive rates have been blamed for the demise of Base Retail, the trading name of Base Menswear, as the company enters administration.
Marc Granditer, managing director of the brand revealed to Drapers: “The men’s business has been challenging with a capital ‘C’ for a number of years. We have seen our market diminish to a point where it’s become unsustainable. After poor Christmas trading, I had no choice but to take this action.
“Rents are always difficult, but generally landlords are receptive. The real problem is the rates – the absurd situation in some of our stores where we were paying twice as much rates as rent. It’s obscene.”
Restructuring firm Portland was appointed as administrator yesterday hashing out the amount of debt left and payment that creditors might be able to expect.
Despite problems with of menswear business, Base Childrenswear remains unaffected, with Granditer adding that the restructuring will “allow us to focus 100 per cent on the children’s market going forward”.
“It’s family business, I’ve known the staff a long time, and it’s not been easy to get through this situation. It was done with a very heavy heart. We hope we can come out of this the other side, really move forward as a childrenswear retailer which is the niche we want to fill,” he said.
Four stores have been closed so far, with at least 10 employees losing their jobs, the five remaining stores are still trading with Granditer hoping to remain in those locations – Basildon, Bluewater, Romford, Stratford and White City – in some form or another.