Hopes fade of Hotter sale as restructuring plan keeps all options open
Hopes of a sale of listed shoe manufacturer and ecommerce business Unbound are fading and turnaround specialists are considering a formal restructure.
Unbound’s board – which is best know for its Hotter Shoes brand – appointed Interpath Advisory in May when an offer of £10million of investment from Marwyn Investment Management collapsed.
Sky News has reported “preparations for a restructuring plan – which would require court approval – allowing it to shed some of its liabilities.”
TheBusinessDesk.com understands that no decision has been reached on the range of options open to Unbound, including store closures and further cost savings, but Interpath declined to comment.
Hotter Shoes has been manufacturing shoes at its factory in Skelmersdale, Lancashire since 1959 and the company boasts that it crafts shoes “in one of the most technologically advanced factories in the world”.
An earlier deal to buy the West Lancashire-based business by private equity backed retailer WoolOvers ended when the board opted for the Marwyn deal.
Turnaround and recovery specialists Interpath were been called in as the business sought protection as a breach of its banking covenants loomed.
Interpath, formerly KPMG’s UK restructuring practice, describes its services as “to help organisations facing challenge or opportunity to navigate what’s next.”
It has been a troubled couple of years for Unbound since parent company Electra Private Equity demerged its hospitality brand, TGI Fridays, leaving Hotter Shoes as its sole brand which it then launched as a fashion portal on AIM as Unbound Group PLC.
UPDATE 15:00 Friday 23 June 2023 from the Unbound board:
“The Board notes recent press speculation regarding the possible implementation of a restructuring plan. Consistent with the strategic review and formal sale process initiated by the Board, as announced on 19 May 2023, the Board and the Company’s advisers continues to explore the options available to maximise value for the Company’s shareholders and the Group’s other stakeholders. The Board will continue to provide further updates as appropriate.”
