// Hotter creditors approve of CVA, resulting in “number” of redundancies
// At least 350 jobs will be saved
// Hotter’s refocus on its ecommerce strategy was driven by the Covid-19 pandemic
Hotter creditors have approved of the footwear retailer’s CVA proposals, which will see it permanently shut 46 stores across the UK.
The retailer aims to reduce its store portfolio and change the terms of rental payments, according to Drapers.
While a “number” of redundancies will take place, the retailer said at least 350 jobs have reportedly been saved.
READ MORE:
- Redundancies loom as Hotter submits CVA proposal
- Hotter prepares for CVA as it seeks to shutter 65 stores
“Following the impact of Covid-19, the CVA was an unfortunate but necessary step to avoid the likelihood of Hotter going into administration, causing a much larger number of job losses, and was critical to ensure a viable future for the business,” Hotter chief executive Ian Watson said.
“Now, we can focus on accelerating the implementation of our strategy to develop the respected and valuable Hotter brand and establish a successful long-term future for the business.”
Hotter’s refocus on its ecommerce strategy was driven thanks to the Covid-19 pandemic, as customers increasingly shifted to online.
The retailer relaunched an enhanced web platform last month, and online sales grew 11 per cent in the year to date, with 35 per cent coming from new customers.
“The past five months of Covid-related lockdown and restrictions have been extremely challenging for our management team and employees,” Watson said.
“In common with other retail businesses we have had to adapt to survive, and this has necessitated significant structural change and regrettable job losses.
“We thank all of our employees for their understanding and dedication throughout the crisis and wish all those leaving us well. The actions taken will ensure a positive future for our business going forward.”
Watson joined as chief executive in March last year, while Claire Peal joined from Hobbs as chief product officer in October.
Click here to sign up to Retail Gazette’s free daily email newsletter
