// Unbound Group is drawing up plans to implement an emergency restructuring mechanism
// The group warned that while it will be able to make a bank repayment in July, a temporary working capital shortfall could arise in September and October
Unbound Group is preparing emergency restructuring plans due to fading sale prospects.
According to Sky News, the owner of Hotter Shoes has asked its advisers at Interpath to start preparations which would require court approval allowing it to shed some of its liabilities.
The talks were described by one of the title’s sources as “contingency planning”, although they acknowledged that such an outcome was becoming increasingly realistic.
The identity of parties who participated in talks about a sale was unclear.
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The company has been struggling for some time and back in May it revealed it was mulling a full sale of the business after a £10m investment from Marwyn Investment Management fell through.
The business said that although the board anticipated it will be able to make a scheduled bank repayment on July 31, a temporary working capital shortfall could arise in September and October due to the planned build-up of inventory ahead of the launch of autumn, winter 2024.
Back in 2020, it launched a CVA, resulting in the permanent closure of 46 stores.
A spokesman for Unbound said it had “initiated a formal review of strategic options which included several possible outcomes, all of which are currently still under consideration”.
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