Brantano UK falls into administration, placing 2,000 jobs at risk

Value shoe retailer Brantano UK has entered administration, placing approximately 2,000 jobs at risk following a weak Christmas trading period.

The announcement comes a few weeks after the footwear retailer's new owners, private equity firm Alteri Investors, began exploring options for the struggling chain together with accountants PricewaterhouseCoopers (PwC).

Brantano UK enters administration following tough Christmas trading period

The firm has been appointed as administrators, with Tony Barrell, Mike Jervis and Rob Hunt of PwC charged with creating a plan to try and save the footwear retailer from going under. The administrators have received over 10 indications of interest from other private investors and retailers about acquiring the retailer as PwC aims on seeking out a buyer for Brantano as a whole, or in parts.

"The continuing challenging conditions for ‘bricks and mortar’ retail stores are well documented. Like many others, Brantano has been hit hard by the change in consumers’ shopping habits and the evolution of the UK retail environment," commented Tony Barrell, lead administrator at PwC.

"The administrators are continuing to trade the businesses as normal whilst we assess the trading strategy over the coming days and weeks. Staff will be paid their arrears of wages and salaries, and will continue to be paid for their work during the Administration." Brantano currently operates 140 stores as well as 60 concession across the UK employing a total of 2,000 members of staff.

The collapse of Brantano is singled out as the first big high-street retailer to fold this year, following a difficult trading period in the run-up to Christmas. The value footwear retailer reported a loss of 4.6 million pounds before tax last year, in spite of a sales increase of 6 percent to 100 million pounds.

Alteri first acquired Brantano three monts ago from Dutch company Macintosh Retail Group, for the sum of 12 million pounds, together with one of the UK's oldest footwear retailers, Jones Bootmaker. However, unlike its value chain counterpart, Jones Bootmaker continues to thrive in the UK and remains unaffected by Brantano's fall into administration.

"Brantano is an established value shoe retailer in the UK and Jones Bootmaker/Brantano businesses attracted considerable interest during the 2015 sales process," said Robert Moran, deals partner at PwC, is leading the sales process. "We are now assessing interest in the UK Brantano business as a whole or its parts and we welcome approaches from interested parties."