Hotter Shoes owed over £11m at time of collapse
Hotter Shoes owed its creditors over £11m at the time of its collapse into administration, it has been revealed .
The footwear retailer had appointed Will Wright and Rick Harrison from Interpath Advisory as administrators, before WoolOvers purchased the brand from Unbound Group for £6.7m.
All of Hotter’s 421 employees and 27 stores and concessions transferred across to the purchaser as a result of the pre-pack deal.
A statement of affairs filed by the administrators revealed outstanding debts to creditors of £11.1m, with an estimated £4.5m available against these claims.
This leaves creditors with a shortfall of £6.6m.
However, any cash returned to creditors will be dependent on how much money Hotter can raise from the administration process.
Over 20 unsecured creditors have claims in the six digits, while secured creditors are owed a total of around £10m.
In May, Hotter announced that a £10m investment from Marwyn Investment Management had failed to materialise. Unbound then said in June that the sales process has been terminated.
In 2020, the retailer launched a company voluntary arrangement (CVA) which led to the permanent closure of 46 stores.