Published: 22nd January 2016
As many as 2,000 jobs are in jeopardy after the discount shoe retailer Brantano was entered into administration in recent days.
The company was acquired by an investment firm towards the end of 2015 but has apparently been unable to overcome difficult trading conditions and maintain a stable financial position.
Administrators from PwC have said that they are seeking a new buyer for the business and explained that they are aiming to see Brantano trade normally while that process is undertaken.
Brantano’s 2,000 employees work across a total of 140 stores and 60 concessions around the UK, with the company officially headquartered in Leicestershire.
Tony Barrell from PwC has suggested that the business is the latest retailer to see a downtown in financial performance as a result of changing consumer spending patterns throughout the UK.
“The continuing challenging conditions for ‘bricks and mortar’ retail stores are well documented,” he said in a statement.
“Like many others, Brantano has been hit hard by the change in consumers’ shopping habits and the evolution of the UK retail environment.”
Alteri Investors acquired Brantano in October of last year but the retailer was reportedly not able to meet its own sales expectations during the festive period, which apparently served to worsen an already unstable financial position.
“The administrators are continuing to trade the businesses as normal whilst we assess the trading strategy over the coming days and weeks,” Burrell said.
“Staff will be paid their arrears of wages and salaries, and will continue to be paid for their work during the administration.”
Administrators also pointed out that the high street footwear retailer Jones Bootmaker will not be impacted by the company’s entry into administration despite having been bought by Alteri Investors in the same deal that saw it acquire Brantano.
Robert Moran from PwC, who is to lead the process of trying to find a new buyer for Brantano, has expressed optimism that he will succeed in his task.
“Brantano is an established value shoe retailer in the UK and Jones Bootmaker/Brantano businesses attracted considerable interest during the 2015 sales process,” he said.
“We are now assessing interest in the UK Brantano business as a whole or its parts and we welcome approaches from interested parties.”
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