Shoe retailer Brantano has collapsed into administration, putting more than 1,000 jobs at risk.
The company, which operates 73 stores and 64 concessions across the UK, was bought out of administration just over a year ago by a company controlled by turnaround specialists Alteri. However, the chain has been battling against difficult trading conditions in the retail sector and Alteri has been attempting to sell Brantano, as well as another footwear chain, Jones Bootmaker, which it bought along with its sister retailer in 2015.
Tony Barrell, lead administrator at PwC, said: “Despite significant improvements in the business and reductions in the cost base, trading has continued to suffer in a depressed and competitive footwear market. 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 UK retail environment.”
The administrators added that the business would continue to trade while a buyer is sought but said some redundancies were “inevitable”. Shoe Zone has been touted as a possible buyer of Brantano whilst private equity firm Endless is said to be interested in the 100-strong Jones Bootmaker chain.
- If you are a supplier to Brantano with 5% margin on that business (say £100k sales), all you need are incremental sales of £2m elsewhere to absorb any loss arising should the worst happen.
- …and the same applies to any supplier having a customer go belly-up…
- In other words, this should be a reflex NAM calculation in these unprecedented times…see here