A sale memorandum has been issued and PwC is handling the process. The retailer registered a pre-tax loss of£2.9 million for the year to December 30, 2006, compared with a£6.2 million profit the year before. Sales fell from£141.5 million to£138.1 million.
A source said the business is highly geared and maintained: “It is similar to what you have with other retailers – a large proportion of the portfolio not contributing and a high level of interest that has to be serviced in a competitive market.”
Stead & Simpson chief executive David White oversaw the refinancing of the company in June to put it on a firmer financial footing. However, Retail Week has learned that the refinancing included only an additional£8 million of new funds. It also included a write-off of£12 million of gross debt and the conversion of£10 million of debt into equity.
Retail entrepreneur John Shannon exited Stead & Simpson after a management buy-out of the business funded by Bank of Scotland Corporate early last year.
The retailer operates the Stead & Simpson, Shoe Express, Famous Footwear, Peter Briggs and Lilley & Skinner fascias. It has 420 shops.
Many footwear retailers have struggled over the past year as a result of poor summer weather and intense competition leading to price deflation.
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