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Hotter Shoes owner plans sale of business

Tom Shearsmith
13 November 2020

Hotter Shoes owner, Electra Private Equity, is reportedly planning to to put the footwear retailer up for sale after launching a company voluntary arrangement earlier this year.

The retailers owners have hired bankers at Stifel to run an auction of the business early next year, according to reports from Sky News.

Sources said that the sale process would not get underway until it had been able to resume more normal trading conditions, amid the pandemic.

The company previously said it has received and continues to receive significant support from the UK Government during the pandemic.

This support includes rates relief, and furlough support, contributing significantly to the ability of management teams to respond effectively to the crisis, to the preservation of thousands of UK jobs, and the continuation of the resultant tax revenue streams.

In June, the company launched CVA proposals to change its rental bill terms and close more than 45 stores, leaving it with only 15 standalone sites and concessions.

The CVA was approved in July, leading Electra to inject £2 million of new funding into the company.

Commenting on the approval of the CVA proposal, Ian Watson, Chief Executive of Hotter Shoes, said: "Following the impact of COVID-19 the CVA was a regrettable but necessary step to avoid the likelihood of Hotter going into administration causing a much larger number of job losses, and was critical to ensure a viable future for the business.

"Now, we can focus on accelerating the implementation of our strategy to develop the respected and valuable Hotter brand with a greater emphasis on its online offering, which should establish a successful long-term future for the business."

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