Hotter Shoes owner Unbound Group is reportedly mulling a restructuring after entering into a formal sale process earlier this year.
The British group has asked advisers at Interpath to begin preparations for a restructuring plan which could allow it to shed some of its liabilities, Sky News reports. Such a restructuring would require court approval.
It comes after the London-listed group announced in May that a planned 10 million pound investment by Marwyn Investment Management had fallen through amid a drop in revenue.
Unbound said at the time its trading environment had “remained challenging” in the first quarter, with “conditions worsening compared with those outlined in the FY23 trading update”.
Days later, the group announced it had entered into a formal sales process after carrying out a strategic review.
In 2020, Unbound Group - formerly Electra Private Equity - launched a company voluntary arrangement (CVA), resulting in the closure of 46 stores.
Since then, the company has repositioned itself as an online-first multi-brand retail platform targeted at the 55+ demographic and raised fresh funding.
However, the group has faced difficult trading more recently in light of rising inflation and “a volatile and unpredictable consumer environment”.