The proprietor of Hotter Shoes is drawing up plans to resort to an emergency restructuring mechanism amid stuttering hopes of a sale.
Sky News has learnt that London-listed Unbound Group has requested its advisers at Interpath to begin preparations for a restructuring plan – which might require court docket approval – permitting it to shed a few of its liabilities.
The talks had been described by one supply as “contingency planning” on Thursday, though they acknowledged that such an final result was changing into more and more real looking.
The identification of events with which it had held talks a few sale was unclear.
Hotter Shoes trades from 17 standalone shops and slightly below 10 concessions in backyard centres.
The firm has been struggling for a while and in May introduced {that a} £10m funding from Marwyn Investment Management had fallen by way of.
It additionally warned that it was working in “worsening” buying and selling situations.
In 2020, it launched an organization voluntary association (CVA) which resulted within the everlasting closure of 46 shops.
A spokesman for Unbound stated it had “initiated a formal review of strategic options which included several possible outcomes, all of which are currently still under consideration”.
“No decision has yet been made but as and when any progress or a conclusion has been reached, a further announcement will be made.”
Interpath declined to remark.
Content Source: information.sky.com