// Electra, private equity owner of Hotter, invests £2m into the retailer as part of CVA
// Hotter’s CVA was revealed last month and approved by creditors
// Hotter will now push on with store closure scheme and digital acceleration
The private equity owner of Hotter is set to pump £2 million into the business as an investment as part of the retailer’s CVA procedure.
Hotter’s CVA was approved by 99.5 per cent of creditors in late July, and the period in which lenders can challenge the outcome has passed.
This means Hotter is free to go ahead and implement the changes it needs to make, such as the planned closure of the majority of its estate, in order to continue as a viable business.
- Hotter to shutter 46 stores as creditors approve CVA
- Redundancies loom as Hotter submits CVA proposal
- Hotter prepares for CVA as it seeks to shutter 65 stores
The £2 million investment was announced by Electra Private Equity today to confirm its support of Hotter’s CVA process.
The firm said the money will be spent on various strategic initiatives, such as improving Hotter’s product development capabilities.
Electra first warned that Hotter faced administration back in June, and that the only way to avoid it was through a CVA restructure approved by creditors.
The CVA now in full swing, the retailer is slated to shut down 46 stores and only keep 15 operating.
The restructure also includes an acceleration of Hotter’s digital capabilities, which will pertain a shift in priorities to ecommerce over bricks-and-mortar retail.
The retailer was already working on returning to its digital acceleration and direct marketing routes when the Covid-19 pandemic struck.
In June, it relaunched an enhanced web platform and online sales grew 11 per cent in the year to date, with 35 per cent coming from new customers.