Companies

WoolOvers Group rescues Hotter Shoes

Jul 21, 2023 United Kingdom

The British footwear brand, until now run by the struggling Unbound Group, has been rescued by the natural knitwear brand WoolOvers, in a pre-pack deal worth 6.7 million British pounds (7.7 million euros)

The sale comes after Unbound Group formally appointed Will Wright and Rick Harrison of Interpath Advisory as Limited administrators for its footwear business. Therefore, under the terms of the deal, Buckminster Hamilton Limited, an entity controlled by WoolOvers Group, is buying Unbound's main operating subsidiary, Beaconsfield Footwear Limited.

Interpath said previously that Beaconsfield had been adversely affected by difficult trading conditions, and despite taking steps to address costs across the business, creditor pressure continued to increase. “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.

As a result of the sale, all 421 employees and the brand's 27 stores and concessions have been transferred to WoolOver, which is owned by the Scandinavian private equity business Verdane. Founded in 1989, WoolOvers sells knitwear, shoes and homewares to more than one million customers via online and mail-order channels, targeting a similar customer demographic to Hotter’s over-55 consumers.

Concerning the deal, Unbound also noted that the cash consideration of 6.7 million British pounds will be paid in full on completion. The transaction is not expected to result in any value attributable to its shareholders, as the group suspended trading in its shares on London’s Alternative Investment Market. “The company currently has minimal cash balances and known creditors of approximately 0.9 million British pounds (1.03 million euros)”, it 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”, commented Jack Brazier, director at Interpath Advisory who advised on the transaction.

Image Credits: internetretailing.net

United Kingdom Acquisitions Companies Footwear Restructuring Shoes