Seventy-five percent of stores slashed in Hotter Shoes restructure

Seventy-five percent of stores slashed in Hotter Shoes restructure

Seventy-five percent of stores slashed in Hotter Shoes restructure

22 Jun 2020
Sam Tidmarsh
Hotter Shoes (Hotter) owner Electra Private Equity PLC announced on Friday that it intends to restructure the company, closing 75% of its stores in the process.

The restructure, via a company voluntary arrangement (CVA) process, may involve “a number of redundancies” at its Skelmersdale head office.

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.”

In their statement, Electra Private Equity PLC explained that negotiations with Hotter Shoes retail landlords to reduce costs had been unsuccessful. 

Sales channel transition from physical to digital

Electra Private Equity PLC comment on their website: “a sales channel transition from physical retail and analogue “direct to consumer” to digital “direct to consumer” gives the opportunity for transformative operating efficiency improvements.

Following the assembly of a new management team led by Ian Watson in 2019, the business has accelerated the implementation of a digitisation strategy that will return Hotter to its direct marketing roots, with an updated model to focus on supplying its target demographic with product differentiated through comfort and fit, primarily through digital direct channels. 

Whilst over 70% of profits already come from the direct channels in the UK and US, Hotter’s strategy is to grow its direct business, particularly online, whilst over time reducing its UK retail footprint to a sustainable level.”

News for You

View all Content Hub
  • You can't not be here, it's one of those places that if you work in software or work in ecommerce you have to be here
  • "The content, people and footfall has been amazing. Every single year it gets bigger and better."
  • The quality of the delegates have been excellent. You've got a lot of Manager and Director roles in attendance
  • "It's a buzzing event. It's the who's who in the retail industry"
    Oracle NetSuite
  • Seamless, very efficient, and the audience we're looking for. Perfect.
    Dubai Commercity
  • In terms of the footfall, it's by far the biggest business Show that we do
  • It's been really busy, all the conversations we have had are with people that are looking for solutions and have got problems to solve
  • We have had lots of really good conversations with relevant brands for us, there’s a lot of people attending, both our partners that we can just network with, but also our customers and prospects.
  • It's a much larger scale than what I was expecting, the atmosphere has been buzzing
    Hermes UK
  • We are super satisfied. We've been able to actually meet our customer and potential customers and the target group is spot on
    DS Smith ePack

Sponsors & Partners

We couldn't run the event without the support of our fantastic sponsors & partners

Until the show opens:

Register Now