Electra Private Equity PLC Hotter Shoes Restructure (5461Q)
June 19 2020 - 8:41AM
UK Regulatory
TIDMELTA
RNS Number : 5461Q
Electra Private Equity PLC
19 June 2020
Electra Private Equity PLC
Hotter Shoes Restructure
19 June 2020
Electra Private Equity PLC announces that its portfolio company,
Hotter Shoes (Hotter), intends to restructure via a company
voluntary arrangement (CVA) process.
Following the emergence of the Covid-19 pandemic, the management
of Hotter has been in discussion with a number of its retail
landlords to seek agreement to reduce the number of stores to a
level and cost that allows Hotter to remain viable. Individual
discussions have been unsuccessful in obtaining the required level
of agreement to allow Hotter to continue on a viable basis and as
such Hotter will be entering into a CVA process in the coming days.
If the CVA proposal is approved and successfully implemented, it
will leave a trading estate of 15 shops.
In parallel with this process, Hotter has entered into formal
consultation with a number of employees at its Skelmersdale head
office that may lead to a number of redundancies.
Neil Johnson, Electra Private Equity PLC Chairman,
commented:
"Before the pandemic hit, Hotter, under new Chief Executive Ian
Watson, was making good progress to accelerate the implementation
of a digitisation strategy to return it to its direct marketing
routes. The need for these actions has been intensified by the
consequences of the past 3 months of lockdown. If successful, the
proposed CVA will result in fewer stores, which will secure the
future of a smaller, sustainable business and will save over 350
jobs. I would like to thank all our colleagues at Hotter for their
continued understanding at this difficult time".
Enquiries
Gavin Manson, Chief Financial & Operating Officer, Electra
Private Equity PLC, 020 3874 8300
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END
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