Bench Limited, which holds the trademark rights to the streetwear brand Bench, filed an application for the opening of insolvency proceedings with the relevant authorities in the UK. Insolvency of Bench Limited will also affect the German service companies of Bench based in Munich. Reasons for this step include a longstanding difficult retail market in the UK and a major logistics problem in 2016.
Barry Knight, Director of Bench Limited, said: "All of us at Bench have worked tirelessly to achieve the turnaround of the business. Our owner has supported us several times with additional capital to make important investments in new branches and employees. Nevertheless, we have not succeeded in putting the company on an economically sustainable basis. The depreciation of the British pound, strong competition and the declining market in our Fashion division have given us a lot of headwind. Ultimately, we were no longer able to raise additional liquidity for the company, either on an equity or debt basis. Therefore, unfortunately, we have no alternative but to initiate insolvency proceedings. Our task now, together with the insolvency administrator, is to find the best possible solution in this situation."
"Despite the numerous challenges, we are confident that the Bench brand has a future, as it can be marketed in the UK, Germany and internationally. Our three licensing agreements are the best proof of this," added Barry Knight.