The future of footwear retailer Hotter Shoes is secure, for now, following a sale of the business to the WoolOvers Group.
Will Wright and Rick Harrison from Interpath Advisory were appointed joint administrators of Beaconsfield Footwear Limited, trading as ‘Hotter Shoes,’ on July 18.
Beaconsfield is a British footwear retailer and the principal trading subsidiary of AIM-listed Unbound Group PLC. The company suspended trading of its shares on July 17. Read SGB Media‘s coverage of the story here.
Interpath said in a statement that Beaconsfield had been adversely affected by difficult trading conditions in the retail environment, and despite taking steps to address costs across the business, creditor pressure continued to increase. As a result, Interpath Advisory was engaged to examine the options available to Beaconsfield.
Following an extensive exploration of options, Interpath said it became clear that it would not be possible to conclude a transaction on a solvent basis, and, as such, the directors took steps to seek the appointment of administrators.
Immediately following their appointment, the joint administrators concluded a pre-packaged sale of the business and certain assets to an entity controlled by WoolOvers Group Limited. The deal is reportedly valued at £6.7million.
As part of the sale, the company’s 421 employees and 27 stores and concessions were transferred to the purchaser. The move will reportedly allow owner Unbound to remain out of insolvency proceedings while its board considers its options for the future.
Woolovers Group, owned by European investment firm Verdane, reportedly attempted an acquisition of Hotter in April but was outbid by a rival offer that it later withdrew.
Will Wright, head of Restructuring at Interpath Advisory and joint administrator, commented, “High-cost inflation and fragile consumer confidence is starting to place mounting pressure on companies up and down the high street.”
Jack Brazier, director at Interpath Advisory who advised on the transaction, added, “We’re pleased to have concluded this transaction which safeguards the future of the Hotter business and wish WoolOvers Group all the very best for the future.”
Photo courtesy Hotter Shoes
