The future of footwear retailer Hotter Shoes has been secured following a sale of the business to the WoolOvers Group.
Will Wright and Rick Harrison from Interpath Advisory were appointed joint administrators of Beaconsfield Footwear Limited, trading as Hotter Shoes, today.
Headquartered in Skelmersdale, Lancashire, the company is a retailer of footwear and the main trading subsidiary of AIM-listed Unbound Group plc.
The Company has been adversely affected by difficult trading conditions in the retail environment, and despite taking steps to address costs across the business, creditor pressure continued to increase. As a result, Interpath Advisory was engaged to examine the options available to the company.
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.
Immediately following their appointment, the joint administrators concluded a sale of the business and certain assets to an entity controlled by WoolOvers Group Limited. As part of the sale, all 421 employees and 27 stores and concessions have transferred across to the purchaser.
“High cost inflation and fragile consumer confidence is starting to place mounting pressure on companies up and down the high street,” commented Will Wright, head of restructuring at Interpath Advisory and joint administrator.
Jack Brazier, director at Interpath Advisory – who advised on the transaction – added: “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 plc is not a trading company and has no operating revenues, with minimal cash balances and known creditors of approximately £900,000.