Future of Hotter Shoes secured following pre-pack deal
Footwear retailer Hotter Shoes has been acquired by knitwear brand WoolOvers in a pre-pack administration deal.
With headquarters in Skelmersdale, Hotter is the main trading subsidiary of AIM-listed Unbound Group.
As part of the sale, all 421 employees and 27 stores and concessions have transferred across to the new owner,
Will Wright and Rick Harrison from Interpath Advisory were appointed as joint administrators of Beaconsfield Footwear, which trades as Hotter Shoes, yesterday.
In a statement, the administrators said the retailer had been adversely affected by difficult trading conditions, and despite taking steps to address costs across the business, creditor pressure had continued to increase. This resulted in Interpath being appointed to examine options available to the company.
They added: “Following an extensive exploration of options, 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.”
Jack Brazier, director at Interpath Advisory who advised on the transaction, said: “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.”
Unbound Group warned earlier this month that an administration was a possibility if it was unable to raise equity of around £2 million.
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