Electra Private Equity which owns Hotter Shoes is looking to restructure the business via a CVA. The business had been in discussion with its landlords to extricate itself from onerous lease terms but this had apparently failed.
If the proposals in the CVA are approved Hotter would emerge with a much-reduced store chain. It currently operates 80 outlets and this number would come down to 15. Creditors will have until July 28th to vote on the proposal.
Sadly the business has also entered into a formal consultation process with some employees at its head office.
Electra Private Equity chairman Neil Johnson commented: “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 three months of lockdown. If successful, the CVA will result in fewer stores, which will secure the future of a smaller, sustainable business and will save over 350 jobs.”
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