The owner of Hotter Shoes, Unbound, has announced the initiation of a formal sales process as it struggles with funding.
The group has appointed Interpath Advisory as joint financial adviser alongside Singer Capital Markets to manage the process.
Unbound said it would be able to make a scheduled bank repayment due on July 31, although it risks a temporary working capital shortfall in September and October due to a build-up of inventory ahead the release of its Autumn/Winter range.
Other options are being considered, such as the raising of additional funding from a debt provider or strategic investor.
Under stock exchange rules, the group is now in an ‘offer period’, meaning interested parties may engge in conversations regarding a sale.
Earlier this week, Unbound said it would suspend activity on its multi-brand ecommerce platform so it could focus on the “simplification of the business” and the core Hotter brand.
The group sadi it expects a pre-tax loss between £4.25m and £4.75m, with the extended summer heatwave, Royal Mail strikes and broader economic conditions to blame.