Hotter Shoes to restructure via CVA
The owner of Hotter Shoes has announced that the footwear retailer is to restructure through a company voluntary arrangement process.
In a statement, Electra Private Equity said Hotter’s management has been in discussions with some of the retailer’s landlords about reducing its number of stores to enable it to remain a viable business following the Covid-19 crisis.
As the discussions have been unsuccessful, the retailer will be entering into a CVA process in the coming days that will leave the business with a portfolio of 15 shops.
Hotter has also entered into formal consultations with a number of employees at its Skelmersdale head office that could lead to some staff being made redundant.
Neil Johnson, Electra Private Equity chairman, said: “Before the pandemic hit, Hotter, under new chief executive Ian Watson, was making good progress to accelerate the implementation of a digitisation strategy to return it to its direct marketing routes. The need for these actions has been intensified by the consequences of the past 3 months of lockdown.
“If successful, the proposed CVA will result in fewer stores, which will secure the future of a smaller, sustainable business and will save over 350 jobs. I would like to thank all our colleagues at Hotter for their continued understanding at this difficult time.”
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