Hotter Shoes to be put up for sale

The owner of British footwear retailer Hotter Shoes is reportedly preparing to put the business up for sale.

Electra Private Equity has called in investment bank Stifel to run an auction of the company during the course of next year, Sky News reports.

Sources told the publication that the sale process would not begin until Hotter Shoes had been able to resume more normal trading conditions.

It comes just months after Hotter Shoes launched a company voluntary arrangement (CVA) to slash its rents and avoid falling into administration. The restructuring, which was given the green light by creditors in July, will see 46 Hotter Shoes stores close, bringing the retailer's total number of stores from 61 to 15.

Hotter Shoes owner looks to exit

In August, Electra Private Equity announced a 2 million pound injection into the retailer as part of the CVA. At that time, Hotter Shoes CEO Ian Watson outlined plans to focus on the retailer’s digital channel moving forward.

“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," he said.

Earlier this month, rival footwear retailer Clarks launched a CVA proposal which, if approved by creditors, will result in the majority of its 320 UK stores moving to turnover-based rents, while 60 will move to zero rent.

A long list of British fashion companies have launched CVAs in recent months as they struggle to cope with the impact of Covid-19, including New Look, AllSaints, Bair Group and Monsoon Accessorize.

FashionUnited has contacted Electra Private Equity for a comment on the report.

Photo credit: Hotter Shoes, Facebook