Thu, 13 Jul 2023 | ADMINISTRATION
Unbound Group, the owner of footwear firm Hotter Shoes, is reportedly seeking to raise up to £2 million to secure the business’ future, otherwise it faces the prospect of falling into administration. Hotter Trades is a digitally-led business trading via online and wholesale channels, as well as through a network of 17 standalone stores and ten concessions in garden centres.
The company has been struggling for several months now, with a £10 million investment from Marwyn Investment Management falling through in May. At the end of June, Unbound announced that a sale process had not been able to secure a buyer for the company and that it was exploring the feasibility of an equity fundraise.
The parent company has now engaged Interpath as joint financial adviser as it undertakes a strategic review of Hotter Shoes, which is its main operating subsidiary. Options under review include a formal restructuring plan or an equity fundraise.
However, Unbound has said that if this process proves unsuccessful then it is likely that the company would be placed in administration, with funding needed “in the near future” to prevent this. If an administration were to occur, then the listed firm would see its shares suspended from trading on AIM.
In Unbound Group’s accounts for the 16 months ending January 31 2022, it reported revenue income of £6.5 million. At the time, the group’s current assets were valued at £25.9 million, with net assets amounting to £23.1 million.
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