Jones Bootmaker jobs at risk as private equity deal collapses
- Author: Zachary Reyes Mar 24, 2017,
Mar 24, 2017, 3:34
Dozens of jobs are at risk across the region after shoe retailer Brantano plunged into administration.
He added the business would continue to trade as normal while a buyer is sought.
Brantano, which was founded in Belgium in 1953 and expanded in Britain in 1998 when it bought 47 Shoe City stores, was purchased alongside Jones Bootmaker for a combined £12m.
Brantano has announced that it would enter into administration as it suffered from rise in costs since post-EU referendum fall in sterling.
The latter is also struggling and is now in talks to potential buyers, in a bid to avoid administration, which would threaten its approximately 800 employees and 100 shops.
"Staff will be paid their arrears of wages and salaries, and will continue to be paid for their work during the administration".
Barrell added: "Like many other retailers, Brantano has also been hit hard by the sharp decline in sterling, the ongoing shift in consumer shopping habits and the evolution of the United Kingdom retail environment".
Jones, which operates 100 stores, has struggled amid tough conditions on high streets brought on by intense competition and changing shopping habits.
GlobalData retail research director Maureen Hinton said that Brantano is mainly based in out-of-town stores so it had to be a destination to attract people.
The group, owned by private equity firm Alteri, has struggled following the Brexit-induced collapse in the value of the pound as well as experiencing hard trading conditions.
One source said the Endless deal collapsed only hours before completion as Alteri wanted £1m more than the £10m offered.
Its sister company, another shoe retailer Jones Bootmaker was also bought by Alteri from the bankrupt Macintosh Retail Group.
H&M and other major chains' addition of footwear range put more pressure on specialist footwear retailers and the specialists experienced such pressure for a number of years.
Based in Hinckley, Leicestershire, the chain has 73 stores and 64 concessions across the United Kingdom and employs 1,086 staff.