Barratts enters administration
Footwear retailer Barratts has entered administration after efforts to secure refinancing and additional equity for the business failed.
Philip Duffy and David Whitehouse of Duff & Phelps, who were appointed as joint administrators on Friday afternoon, are currently reviewing the company’s financial position while seeking to sell the business as a going concern.
The administrators said they could not rule out any redundancies or store closures at this stage.
Duffy explained: “Difficult trading conditions in the sector led the directors to explore potential refinancing options and additional equity for the business. The company had recently received an offer from an investor to inject £5 million into the company but that offer was withdrawn on the evening of the 7 November. In view of the financial position of the company and withdrawal of that equity offer the Directors were left with no choice but to appoint administrators.”
Barratts currently operates from 75 stores and 23 concessions across the UK and Ireland and employs 1,035 people. The retailer previously went into administration in December 2011 but was saved in January 2012 after the existing management team reached a deal with administrators to buy 89 stores and the company’s online business.
