Hotter Shoes’ parent company Unbound Group is reportedly in talks to launch emergency restructuring plans to “shed some of its liabilites”, according to Sky News.

Unbound Group has reportedly asked its financial advisers Interpath Advisory to start drawing up a restructuring plan, which would need court approval amid “stuttering hopes of a sale”.

This comes after it was reported last month that the group had launched a strategic review and drafted financial advisers as it was understood to be mulling the sale of the footwear retailer.

Sources told Sky News the talks are part of “contingency planning” but also said the restructuring proposal was “becoming increasingly realistic”.

A spokesperson for Unbound said the business had “initiated a formal review of strategic options which included several possible outcomes, all of which are currently still under consideration”.

They added: “No decision has yet been made but as and when any progress or a conclusion has been reached, a further announcement will be made.”

Interpath Advisory did not provide a comment.