Shoe manufacturers face supplier issue

Shoe manufacturers and suppliers are facing financial difficulties due to unpaid bills from Stead & Simpson who collapsed into administration last month. At least one large supplier has gone bust following the retailer's implosion and there are growing fears others will follow, according to the Sunday Telegraph. Leicester-based supplier Now Shoes appointed Begbies Traynor as administrator on Valentine's Day. It is understood that Now Shoes was owed an estimated £650,000 by Stead & Simpson and Dolcis, which also collapsed earlier this year. The Sunday Telegraph has spoken to other footwear suppliers who between them are owed £220,000 following Stead & Simpson's demise. A number are taking legal action to reclaim the money. Another supplier, owed £25,000 by Stead & Simpson, said the retailer was still accepting stock deliveries two days before it went bust on January 21, an action which he believes was unethical.

The supplier also questioned whether PricewaterhouseCoopers, Stead & Simpson's administrator, held a thorough enough auction before it sold the chain the Shoe Zone, a rival. Shoe Zone is believed to have paid 12p in every pound for Stead & Simpson's stock. A spokeswoman for PwC said the sale process was transparent.