The owner of Hotter Shoes is racing to secure emergency funding in an attempt to avoid falling into administration.

Sky News understands that the board of Unbound Group is trying to raise up to £2m within days to pave the way for the implementation of a restructuring plan.

City sources warned on Wednesday that unless that funding was forthcoming “in the near future”, Unbound’s board would have little choice but to call in administrators.

Hotter Shoes trades from 17 standalone stores and just under 10 concessions in garden centres.

The company has been struggling for some time and in May announced that a £10m investment from Marwyn Investment Management had fallen through.

Be the first to get Breaking News

Install the Sky News app for free

Unbound said in a stock exchange announcement on 27 June that it had terminated a formal sale process for the Hotter Shoes business.

It added that it had held discussions with major shareholders and had received “some positive feedback” about a share sale to raise between £1.5m and £2m.

Those talks are said to be continuing.

Interpath Advisory, the restructuring firm, is working with Unbound on its contingency planning.

Read more:
Hotter Shoes owner Unbound steps into restructuring as auction stalls
Wilko races to raise cash in bid to salvage restructuring deal

In 2020, it launched a company voluntary arrangement (CVA) which resulted in the permanent closure of 46 stores.

A spokesman for Unbound said: “All options remain on the table and are still being considered, as we previously announced.”

Related posts:

Kier on brink of housebuilding arm sale to financier Hands Deliveroo riders poised to strike over pay and conditions Morrisons suitor given more time to ‘put-up or shut-up’ as bidding war looms A billion doses and counting: COVID vaccine helps BioNTech reverse its financial fortunes ATP and WTA tours hire bankers to help serve up ONE Tennis merger Sceptics remain unconvinced but M&S sales show encouraging signs of a turnaround National debt grows by £18.6bn in April – month’s fourth-highest borrowing since records began Bank of England tells banks: ‘Take climate action now or face profits hit’ Energy crisis: How worried should I be about the lights going out? FTSE 100 hits 8,000 points mark for first time Losing sleep, ignoring letters and falling behind: One in five of us battling to keep up with bills Microsoft’s £55bn Activision takeover blocked by US court pending hearing