Masai GB Ltd, the UK distributor of MBT footwear, has confirmed that it has fallen into administration following the bankruptcy filing in Switzerland of the group's parent company, Masai Marketing & Trading AG, earlier in May.
Masai GB Ltd in a statement indicated it had appointed Chris Laughton and Peter Godfrey-Evans of Mercer & Hole as joint administrators. Laughton said in a statement: “Our present intention is that the company's retail stores will continue to operate. The appointment of Mercer & Hole as administrators coincides with the start of MBT's 4-week summer sale promotion. This should improve the prospects for the business and will help us do the best we can for creditors.”
Parent company Masai Marketing & Trading AG declared bankruptcy on
May 9 in Winterthur, Switzerland and has reportedly closed its head office and dismissed all its employees. Reports in Europe indicated that it’s still uncertain what impact the bankruptcy will have on subsidiaries across the world, some of which are struggling like its home market but some of which are profitable. MBT is said to have suffered losses in market share and margin erosion in the last few years due to new competition. Berkshire Partners, which acquired MBT in stages between 2007 and last September, has not succeeded in finding a new investor.
Laughton of Mercer & Hole told Drapers that unless a buyer for parent Masai Marketing & Trading AG is found soon, inventory could run out. He said, “If the overseas business can be revived, then that gives the UK business scope to continue, but if no one comes in to buy the business and kick-start production then the operation here will not be able to continue.
