Unbound Group has filed an intention to appoint Interpath Advisory as administrators to its main operating subsidiary Beaconsfield Footwear, which operates Hotter Shoes.
The group revealed last week it was on the brink of collapse unless it could raise £2m in emergency funding.
The fundraising would support its formal restructuring plan after talks about a possible sale of the business fell through.
However, Unbound continued discussions with several interested parties to acquire the trade and assets of Beaconsfield Footwear.
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In an update on Monday, the company said “having regard to the group’s obligations to its creditors and wider stakeholders, it is now clear to the board that it is no longer appropriate to progress these parallel discussions further”.
As such, it has filed a notice of attention to appoint Will Wright and Rick Harrison of Interpath Advisory as administrators.
The group has also requested a suspension of the company’s shares on London Stock Exchange junior market AIM with effect from 7.30 am today.
Unbound said in a statement: “It is currently expected that, following their formal appointment, the administrators will implement a sale of the trade and assets of OpCo to a third-party purchaser as soon as reasonably practicable thereafter.
“There can be no certainty that any such sale will proceed or as to the terms or timing of any such sale.”
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