Just a day after Jones Bootmarker filed notice of intention to appoint an administrator, sister retailer Brantano has followed in its footsteps.
The measure has been taken to buy Brantano “more time” to ward off debt-hungry creditors while a sale is sought by ower Alteri.
It is understood that although the notice of intent has been filed, an administration may not be necessary if a buyer is found.
If it did go ahead, it would be the second time in little more than a year – Brantano was put through a pre-pack administration by Alteri in February 2016.
While it is not yet known how much interest has been registered in the business or when the deadline for bids is, it is clear that Brantano has been blown off course by the competitive footwear market and the effects of rising living wage costs and impending business rate hikes.
One retailer that has not been battered by such factors is fashion giant and Zara owner Inditex, which unveiled a 10% jump in full-year profits to €3.16bn.
And civic-minded homeware retailer Ikea has vowed to take action following a BBC investigation that alleged some of the Swedish retailer’s delivery drivers, often from eastern European countries, were sleeping in their vehicles during long-haul trips as they could not afford expensive living costs in western Europe.
Quote of the day
“This is fake news that appears to have been either deliberately or recklessly circulated by an irresponsible organisation that is making headlines at the expense of Sports Direct”
– A Sports Direct spokesperson responding to data from Pensions & Investment Research Consultants regarding the ratio of chief executive pay to that of an average employee.
Today in numbers
The increase in Inditex’s full-year sales to €23.31bn
More than 11%
The proportion of shares held by Sports Direct in Debenhams through a put option
Look out for Ted Baker’s full-year results to see if the quirky fashion brand can continue it strong run of rising sales and profits.
Grace Bowden, reporter