Schuh calls in advisers amid tough trading

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Schuh calls in KPMG advisers amid tough trading to seek rent reductions but no CVA
Schuh has sought help from KPMG advisers (Image: PA)
// Schuh is seeking help from KPMG advisers to assess its options after a period of tough trading
// Store closures and a CVA are not on the cards – only rent reductions
// Schuh exited Germany in June & posted a 10% slump in full-year profits last year

A period of tough trading has prompted Schuh to seek help from KPMG advisers to assess its options.

According to The Sunday Times, the Scottish footwear retailer has asked landlords for rent reductions across its stores in the UK.

It is not seeking to launch a CVA nor any store closures.

”Given the challenging trading climate for all retailers, it is prudent to review options for any eventualities in market,” a Schuh spokesperson told the newspaper.

“We have no immediate plans for store closures and continue to invest in strategies to enhance customer experience including our new 2020 store design, customer recruitment and CRM.”

The news comes after Schuh closed down all three of its German stores in June in order to focus on its British and Irish markets.

In its most recent full-year report, for the period ending February 3, 2018, Schuh saw annyal pre-tax profits drop 9.6 per cent to £15 million.

However, sales in that same period rose 9.8 per cent to £308.5 million.

The retailer attributed the performance to an “overtly promotional retail market”.

Founded in 1981, Schuh is headquartered in Scotland and operates 132 stores in the UK, Republic of Ireland and Channel Islands.

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