The owner of Hotter Shoes is drawing up plans to resort to an emergency restructuring mechanism amid stuttering hopes of a sale.

Sky News has learnt that London-listed Unbound Group has asked its advisers at Interpath to commence preparations for a restructuring plan – which would require court approval – allowing it to shed some of its liabilities.

The talks were described by one source as “contingency planning” on Thursday, although they acknowledged that such an outcome was becoming increasingly realistic.

The identity of parties with which it had held talks about a sale was unclear.

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

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

It also warned that it was operating in “worsening” trading conditions.

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

A spokesman for Unbound said it had “initiated a formal review of strategic options which included several possible outcomes, all of which are currently still under consideration”.

“No decision has yet been made but as and when any progress or a conclusion has been reached, a further announcement will be made.”

Interpath declined to comment.

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