Hotter investor injects £2m as CVA challenge period ends
Hotter Shoes investor Electra Private Equity has injected £2m into the British footwear business as the challenge period for its CVA drew to a close.
The restructuring of the comfort footwear specialist will now going ahead shifting its focus to e-commerce with the closure of 46 of its stores, reducing its store estate to 15.
Creditors approved the CVA last month but in accordance with regulation a period of 28 days is allowed for any challenges to be heard.
Now that period has completed Electra has confirmed its further investment and in a short statement it said: "No challenges have been made and as such the CVA is now confirmed, and Electra will proceed to make a £2m investment in Hotter, committed in support of the CVA process."
The Skelmersdale-based business had been carrying out its digitisation strategy prior to the COVID-19 pandemic but the lockdown of non-essential retail left the business in its prior form, with a large physical retail footprint, unviable.
It said had tried, unsuccessfully, to reduce the number of stores by negotiating with landlords when the pandemic struck and was left with no option but to pursue a CVA to safeguard the underlying business and 350 jobs.