Reviewed: 16th February 2016
A pre-pack administration deal has seen more than a thousand jobs saved across the operations of the footwear retailer Brantano, which has dozens of stores around the UK.
Most of Brantano’s outlets have been acquired out of administration by the investment firm Alteri, which initially bought the business in October of last year but took it into administration in January 2016.
Administrators appointed to manage Brantano’s affairs said that the business has been “hit hard” by the shift in consumer habits in the UK and the trend towards online shopping among key demographics.
Alteri’s reacquisition of Brantano businesses sees it renew ownership of 81 shoe stores and 59 concessions in the UK, which will see as many as 1,372 jobs saved nationwide.
However, almost 60 Brantano stores were not bought back by the investment firm in the recently completed pre-pack process, which means more than 600 of the company’s employees could still lose their jobs.
Alteri, which specialises in turning around retail businesses facing financial peril, bought another shoe seller in Jones Bootmaker as part of the deal that initially saw it take ownership of Brantano.
Hopes are that the 57 stores and one concession that were until recently running as Brantano outlets will soon be sold to new owners who can use them as retail sites for their own purposes.
“Following the acquisition of Jones and Brantano in October last year, and a subsequent review of Brantano, it was clear that the business required fundamental restructuring,” said Gavin George, Alteri’s chief executive in a recent statement.
“Every action possible was taken to restructure the business on a solvent basis including extensive renegotiations with landlords,” said Mr George.
“Unfortunately the landlords were unable to revise their terms to a viable level, and with the additional complexity brought on by the insolvency of previous parent company Macintosh Retail Group, administration was the only route available.
“The restructured business is well placed for future development as an out of town, family footwear specialist and both Jones and Brantano are now able to move forward on a solid financial and strategic footing.”