Hotter Shoes owner Unbound Group reportedly seeking funding to avoid collapse

Unbound Group, the owner of British footwear retailer Hotter Shoes, is reportedly in need of fresh funding if it is to avoid collapse.

The London-listed group faces calling in administrators if it fails to raise up to 2 million pounds from a share sale in the coming days, Sky News reports, citing City sources.

A spokesperson told Sky: “All options remain on the table and are still being considered, as we previously announced.”

It comes after the group announced late last month it had ended its formal sale process after failing to get full shareholder support for any offers.

The group said at the time it would continue to pursue a strategic review for its main operating subsidiary.

It also said recent trading had been “encouraging”, with profitability in line with expectations amid ongoing cost-cutting efforts.

The group has experienced difficult trading in recent years. In 2020, it launched a company voluntary arrangement (CVA), resulting in the closure of 46 stores.

It then repositioned itself as an online-first multi-brand retail platform targeted at the 55+ demographic and raised fresh funding.

However, it has faced more troubles recently against a backdrop of rising inflation and “a volatile and unpredictable consumer environment”.

In May, it announced that a planned 10 million pound investment by Marwyn Investment Management had fallen through following a drop in revenue at Unbound.

Days later, the group announced it had entered into a formal sales process after carrying out a strategic review.