Hotter parent company Unbound Group intends to appoint Interpath Advisory as administrators to the group’s main operating subsidiary, Beaconsfield Footwear, which includes Hotter Shoes.
This comes as Unbound Group announced the end of its formal sale process at the end of last month as well as an update on its strategic review.
The footwear retailer said in a statement to the London Stock Exchange that it is “now clear to the board that it is no longer appropriate to progress” further with discussions relating to a restructuring plan, an equity fundraise, or the possibility of an acquisition of the group’s bank debt.
Unbound Group said: “Regrettably, the board has therefore concluded that it is required to take the necessary steps to preserve value for the group’s creditors and avoid OpCo trading insolvently.
“As a result, the directors of OpCo, with oversight from the Board, have resolved to file a notice of intention to appoint Will Wright and Rick Harrison of Interpath Advisory Limited as administrators to OpCo.
“There can be no certainty that any such sale will proceed or as to the terms or timing of any such sale. Any such transaction would result in no value for the company’s existing shareholders.”
Unbound has also requested a suspension of trading in the company’s ordinary shares on the junior London Stock Exchange with effect from today “pending clarification of the company’s financial position”.
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