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Unbound Group, owner of Hotter Shoes, has closed its sales process after receiving no potential offers capable of obtaining shareholder and stakeholder support.
The group previously launched a strategic review and formal sales process on 19 May to consider the options available to maximise the company’s value, among which the sale of the company was also considered.
However, Unbound has now announced that there are no discussions with potential offerors now.
The company has also said that Interpath Advisory has been appointed to run the strategic review of the group’s operating subsidiary. In light of the recent trading update, Unbound is currently assessing the feasibility of an equity fundraise of between £1.5m and £2m to support the implementation of a restructuring plan.
Should the equity fundraise progress, the company said it will “include an open offer element to enable participation by the Company’s wider shareholder base”.
In the current trading update, Unbound’s revenues continue to be impacted by liquidity constraints. However, profitability has been “in line” with the board’s expectations.
The group’s EBITDA amounted to £1.1m in April and May combined, with a margin of 14% and an improvement of 9% compared to the previous year.
