// Edinburgh Woollen Mill will insert pandemic clauses into the new leases on Bonmarche stores

// The group’s owner Philip Day also owns Peacocks – the company that bought Bonmarche out of administration

// The clauses mean EWM can agree on new Bonmarché store leases without having to pay any rents upfront until lockdown is lifted

Edinburgh Woollen Mill (EWM) is reportedly inserting pandemic clauses into the new leases it is due to sign with landlords on Bonmarché stores – the retailer its owner Philip Day bought out of administration last year.

The clauses mean EWM can agree on new Bonmarché store leases without having to pay any rents upfront until the government-mandated lockdown is lifted and non-essential stores are reopened.

The new initiative also means that the company will be refunded any rent payments by landlords, should another pandemic hit in the future.

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The clauses are only being added to new lease agreements with landlords for Bonmarché stores, Retail Week reported.

In November, Day’s Peacocks bought Bonmarché out of administration, which resulted in the company closing 30 underperforming Bonmarché stores by December.

Bonmarché fell into administration in October, putting around 2900 jobs at risk.

Specialist advisory firm FRP was appointed as administrators.

FRP said at the time that Bonmarche would continue to trade with no immediate job losses or store closures, as it assessed options to secure its future and search for a buyer.

At the time, joint administrators Tony Wright, Alastair Massey and Phil Pierce at advisory firm FRP Advisory said the Peacocks deal was the “best opportunity to maximise returns for creditors and sell the business on a going concern basis”.

Bonmarche said thanks to the clause, the new leases will only start when the stores can reopen and restrictions due to coronavirus are lifted – a “mutual” agreement between Bonmarche and landlords.

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