// Hotter submits CVA proposals to creditors
// The footwear retailer aims to avoid going into administration
// The CVA aims to seek approval for the closure of 46 stores
Hotter Shoes has reportedly submitted its CVA proposal to creditors and shareholders in an effort to seek approval for the closure of 46 stores.
The footwear retailer has said it is necessary “to avoid the likelihood of Hotter going into administration” following the high street’s recent collapses triggered by the Covid-19 pandemic, Drapers reported.
If the proposals were to go ahead, Hotter’s store portfolio would be reduced from 61 to 15 stores.
It will also result in the change of terms of rental payments on the remaining sites.
The CVA will result in “a number” of redundancies, but it will save 350 jobs.
Creditors will need to vote on the proposal by July 28 and a virtual shareholders meeting will take place on July 29.
If approved, the expected completion date is March 1, 2021.
“The challenges we are facing as a result of the pandemic mean that these steps are necessary to ensure the long-term success, and indeed survival, of the business,” Hotter chief executive Ian Watson said.
“The proposed CVA will enable us to continue with our strategy and will prevent further store closures and job losses in the long term,” he said.
Watson joined as chief executive in March last year, while Claire Peal joined from Hobbs as chief product officer in October.