Electra Private Equity PLC Hotter Shoes Restructure (5461Q)

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RNS Number : 5461Q

Electra Private Equity PLC

19 June 2020

Electra Private Equity PLC

Hotter Shoes Restructure

19 June 2020

Electra Private Equity PLC announces that its portfolio company, Hotter Shoes (Hotter), intends to restructure via a company voluntary arrangement (CVA) process.

Following the emergence of the Covid-19 pandemic, the management of Hotter has been in discussion with a number of its retail landlords to seek agreement to reduce the number of stores to a level and cost that allows Hotter to remain viable. Individual discussions have been unsuccessful in obtaining the required level of agreement to allow Hotter to continue on a viable basis and as such 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 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 PLC Chairman, commented:

"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 3 months of lockdown. 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".

Enquiries

Gavin Manson, Chief Financial & Operating Officer, Electra Private Equity PLC, 020 3874 8300

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June 19, 2020 09:41 ET (13:41 GMT)