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Shoe retailer Brantano calls in administrators Shoe retailer Brantano calls in administrators
(about 2 hours later)
Around 2,000 jobs are at risk after the shoe retailer Brantano called in administrators on the back of a tough Christmas on the high street. About 2,000 jobs are at risk after the shoe retailer Brantano called in administrators on the back of a tough Christmas on the high street.
The retailer, which is owned by private equity firm Alteri, has appointed accountancy firm PwC as administrators. Brantano has 140 shops and 60 concessions across the UK, employing roughly 2,000 staff. The accountancy firm PwC has been appointed as the administrator and has said it will try to save the business.
The collapse of the retailer is the first high-profile failure on the high street of 2016. Retailers suffered a difficult period in the run-up to Christmas, traditionally the most lucrative time of year . Shoppers increasingly shopped online instead of on the high street while warmer than average weather dampened demand for winter clothing. The collapse of Brantano is the first high-profile failure on the high street this year. Retailers suffered a difficult period in the run-up to Christmas, traditionally the most lucrative time of year. Consumers shopped online instead of on the high street and warmer than average weather dampened demand for winter clothing.
Tony Barrell, lead administrator at PwC, said Brantano had been hit hard by the change in consumer shopping habits. Brantano, which is owned by private equity firm Alteri, has 140 shops and 60 concessions across the UK, employing about 2,000 staff. The firm was founded in Belgium in 1953. It expanded into the UK by buying 47 Shoe City shops in 1998.
The collapse of Brantano is likely to raise questions about the role of private equity firm Alteri, which bought the chain just three months ago. Alteri paid an estimated £12m to buy Brantano and Jones Bootmaker in October 2015. PwC insisted that Alteri had made “sustained efforts” to rescue Brantano. The administrator has already received more than 10 expressions of interests from private investors and other retailers about buying the chain.
The administrators will attempt to sell Brantano and said they will keep its stores open for the moment. PwC has pledged that it will try to find a buyer for Brantano as a whole, with its shops remaining open for the moment. However, the retailer could be broken up if retailers look to buy its prime sites. Brantano’s shops are primarily large out-of-town units in retail parks, while the concessions are located in garden centres.
Barrell said: “The continuing challenging conditions for bricks and mortar retail stores are well documented. Like many others, Brantano has been hit hard by the change in consumers’ shopping habits and the evolution of the UK retail environment. In the past few years, a number of retailers have gone into administration before or after Christmas, including Woolworths, HMV, Zavvi, and Jessops.
Brantano’s collapse is likely to raise questions about the role of Alteri which, just three months ago, paid an estimated £12m to buy Brantano and Jones Bootmaker from Dutch company Macintosh. PwC insisted that Alteri had made “sustained efforts” to rescue Brantano.
Tony Barrell, lead administrator at PwC, said Brantano had been hit hard by the change in consumer shopping habits: “The continuing challenging conditions for bricks and mortar retail stores are well documented. Like many others, Brantano has been hit hard by the change in consumers’ shopping habits and the evolution of the UK retail environment.
“The administrators are continuing to trade the businesses as normal whilst we assess the trading strategy over the coming days and weeks. Staff will be paid their arrears of wages and salaries, and will continue to be paid for their work during the administration.”“The administrators are continuing to trade the businesses as normal whilst we assess the trading strategy over the coming days and weeks. Staff will be paid their arrears of wages and salaries, and will continue to be paid for their work during the administration.”
The administration only involves Brantano (UK) Limited, the UK arm of the brand. Jones Bootmaker is not affected.