The move could see the the high street chain close over 60 of its UK stores, and comes after the retailer’s parent company, Electra Private Equity, entered discussions with a number of its retail landlords seeking agreements to reduce the number of stores to a level and cost that would allow Hotter to “remain viable”.
However, Electra noted that these individual discussions were “unsuccessful”, and as such, said Hotter will be entering into a CVA process “in the coming days”. If the CVA proposal is approved and successfully implemented, it will leave a trading estate of 15 shops.
In parallel with this process, Hotter has also entered into formal consultation with a number of employees at its Skelmersdale head office that “may lead to a number of redundancies”.
Neil Johnson, Electra Private Equity chairman, said: “Before the pandemic hit, Hotter, under new chief executive Ian Watson, was making good progress to accelerate the implementation of a digitisation strategy to return it to its direct marketing routes.
“The need for these actions has been intensified by the consequences of the past three months of lockdown.”
He added: “If successful, the proposed CVA will result in fewer stores, which will secure the future of a smaller, sustainable business and will save over 350 jobs. I would like to thank all our colleagues at Hotter for their continued understanding at this difficult time.”