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Hotter Shoes owner Unbound Group has announced that it is looking to offload the company as its board of directors continues to seek additional funds.
Unbound has appointed Interpath Advisory as joint financial adviser alongside Singer Capital Markets, its current financial adviser, to manage the formal sale process.
The board believed that it would be able to make a scheduled bank repayment on 31 July.
However, a “temporary working capital shortfall” could occur in September and October due to the “planned build-up of inventory ahead of the launch of autumn, winter 2024”.
The shortfall could be addressed via working capital management, alongside other measures.
However, the company stated that these measures could damage its longer-term growth prospects.
Aside from a full sale, the board is also considering other options such as raising additional funding from a specialist debt provider or strategic investor, from the accelerated sale of its trade assets or of the shares in its main operating subsidiary.
The group expects a pre-tax loss of around £4.25m-4.75m, blaming an extended summer heatwave, Royal Mail strikes across December and “broader economic conditions”.
