Hotter Shoes outlines growth plans as owners demerge hospitality brands

Footwear brand Hotter Shoes will become part of an expanded business offering lifestyle products for the over 55s as part of its owner’s growth plans.

Electra Private Equity will rebrand as Unbound Group following a demerger of its hospitality brands through a new company called Hostmore. After the demerger, Electra’s sole remaining corporate investment will be Hotter but as Unbound Group it will extend the product ranges it offers.

In a trading update, Electra said the demerger was the “most attractive route to create both short and longer term shareholder value.”

Electra shareholders will receive shares in Hostmore and will retain their shares in Electra on AIM.

Electra went onto say Hotter was now a now a fast growing, profitable and cash generative e-commerce focused footwear brand since its transformation to digital.

It said Hotter’s direct to consumer channels now reach 29% of the female population in the UK over the age of 55.

In the first 6 months of its financial year to January 2022 sales have grown 39% on the comparable period in 2020.

It also said cultural and demographic shifts in the over 55 demographic now provide an opportunity to grow its Hotter customer base through the addition of similarly themed products beyond footwear.

Subject to the Hostmore demerger completing, Electra intends to seek shareholder approval to rename Electra as Unbound Group and to move its listing to AIM.

As part of the transition to Unbound, Hotter has appointed Dan Lampard as the new chief financial officer.

Ian Watson, CEO of Hotter, said: “We are delighted with the progress we are making and welcome Dan to our team at this important time for the business.

“His track record of success in on-line, direct-to-consumer retail businesses will help drive our transformation as we work towards our listing on AIM and focus on delivering growth across our platform.”

Neil Johnson, chair of Electra, said: “It is an absolute priority for the Electra Board that, having already successfully delivered significant value for shareholders in our realisation strategy, the value realised for our final two investments should also exceed expectations.

“Whilst we can’t determine the value that the market will ascribe to Hostmore and Unbound, what we can say is that we are delighted to be planning for both companies to embark on their separate journeys as independent listed companies with the management, strategy and financial position to deliver real value growth in both the short and longer terms.”