Administrators are set to be appointed at Hotter Shoes by parent company Unbound Group plc.
Hotter Shoes is the trading name of Beaconsfield Footwear Limited, a tech-enabled eCommerce platform headquartered in Skelmersdale, Lancashire.
Share trading in Unbound – which listed on the London Stock Exchange in February 2022 – has been suspended after restructuring plans, including an equity fundraise, failed. Attempts to sell the business prior to that also failed.
Unbound’s multi-brand retail platform supports the active lifestyles of the 55+ demographic with a range of products and services.
It has filed a notice of intention to appoint Will Wright and Rick Harrison of Interpath Advisory Limited as administrators of Beaconsfield Footwear, its main trading business.
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“It is currently expected that, following their formal appointment, the administrators will implement a sale of the trade and assets… to a third-party purchaser as soon as reasonably practicable thereafter,” read a statement.
“There can be no certainty that any such sale will proceed or as to the terms or timing of any such sale. Any such transaction would result in no value for the company’s existing shareholders.”
It added that “Unbound Group plc is not a trading company and has no operating revenues”.
The company has minimal cash balances and known creditors of approximately £900,000.
“Whilst the company holds certain investments that the board believes are likely to have a value in excess of the amounts due, it is also likely to take some time to realise these assets. In light of the above developments, there is uncertainty as to whether the company is able to pay its debts as they fall due,” it added.
“The board has therefore requested a suspension of trading in the company’s ordinary shares on AIM with effect from 7.30am today pending clarification of the company’s financial position. The board is now reviewing the options available to the company.”