Unbound Group, the parent company of British shoe company Hotter, said on Monday it has appointed administrators for its main operating subsidiary, Beaconsfield Footwear Limited, after a lengthy review process.
The company said in a statement on the London Stock Exchange today that it will appoint Will Wright and Rick Harrison of Interpath Advisory Limited as administrators — and has requested a suspension of the trading of its ordinary shares on AIM, a sub-market of the London Stock Exchange, this morning pending clarification of its financial position.
Unbound added that it is currently expected that, following their formal appointment, the administrators will implement a sale of the trade and assets of Beaconsfield Footwear Limited to a third-party purchaser as soon as possible. But, there can be no certainty that any such sale will proceed or what the timing of any sale would be, the company added.
The company also noted on Monday that it currently has minimal cash balances and known creditors of less than a million pounds. “Whilst the company holds certain investments that the board believes are likely to have a value in excess of the amounts due, it is also likely to take some time to realize these assets,” the company said.
This news comes as Unbound Group has explored several avenues to refuel its business.
On June 27, the company’s board of directors announced the termination of the formal sale process, which launched in May, in the absence of potential buyers. “No potential offers for the issued and to be issued share capital of the company were received that the Board considered capable of receiving shareholder and wider stakeholder support,” the company said at the time. “The Board also confirms that there are no discussions ongoing with potential offers.”
The company has also explored a formal restructuring plan as well as the possibility of an acquisition of the Group’s bank debt by one of its shareholders, but these efforts were unsuccessful.
Despite this news, Unbound Group said it still plans to hold its annual general meeting on July 31 in London.