Barratts enters administration

High street footwear retailer Barratts has gone into administration, blaming “difficult trading conditions” and has put more than a 1,000 jobs at risk. It is the third time in four years that the footwear chain has 

been placed into administration, and the retailer has appointed Duff & Phelps as administrator, who are currently reviewing the shoe chain’s financial position, as well as seeking a buyer for the business.

The chain operates 75 stores and 23 concessions across the UK and Ireland and employs 1,035 people, called in administrators following a significant drop in sales and the failure to secure refinancing for the business.

Philip Duffy, partner at Duff & Phelps, said: “Difficult trading conditions in the sector led the directors to explore potential refinancing options and additional equity for the business. The company had recently received an offer from an investor to inject 5 million pounds into the company but that offer was withdrawn on the evening of the 7 November.

“In view of the financial position of the company and withdrawal of that equity offer the Directors were left with no choice but to appoint administrators.”

Barratts calls in administrators

Last time the retailer went into administration was December 2011, that time the footwear chain was saved after the existing management team reached a deal with administrators to buy 89 stores and the company's online business.

Commenting on the collapse, Neil Saunders, managing director at retail consultancy Conlumino, told the BBC that he expected Barratts to survive "in one form or another".

Adding: "I would be surprised if it disappeared from the high street altogether. It has a sizeable estate. I expect it to emerge as a much smaller business with fewer stores."

While a financial review of the business is being conducted all stores will remain open, though the administrators said they could not rule out any redundancies or store closures.