Tue, 12 Nov 2013 | ADMINISTRATION
Duff & Phelps has been called in as shoe retailer Barratts becomes the latest retail business in administration, in a clear indication that the high street is still under pressure with tight household budgets. This will mark the third time that Barratts has engaged insolvency proceedings since 2009, at the height of the downturn.
Barratts attributed its administration to a fall in sales and being unable to secure the cash needed to stay afloat.
The firm has 75 shops and 23 concessions across the UK and Ireland and employs 1,035 staff, with about half being on a part-time basis.
Philip Duffy, partner at Duff & Phelps, explained: “Difficult trading conditions in the sector led the directors to explore potential refinancing options and additional equity for the business. The company had recently received an offer from an investor to inject £5 million into the company but that offer was withdrawn on the evening of the November 7.
“In view of the financial position of the company and withdrawal of that equity offer the directors were left with no choice but to appoint administrators.”
The administrators are now seeking a buyer for the chain, and may have to consider redundancies and store closures. The stores are presently trading as normal.
The Barratts brand dates back to 1903 when W Barratt Boot and Shoe Company was established. It peaked with over 400 outlets in the 1980s and 1990s.
Michael Ziff, chairman of Barratts' parent company Stylo, bought 160 stores from Deloitte out of administration in 2009, with 220 store closures. Later, in December 2011, its concessions business was hit, with the subsequent rescue of 89 of its standalone stores, but with the loss of another 191 stores and 371 concessions, before becoming distressed again just recently.
Those who are interested in discussing the matter with the administrators can contact them here.
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Related information:
High Street shoe chain Barratts struggling for survival
Search still on for buyer for Barratts Priceless
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