Shoe shops closed as troubled chain is sold in rescue deal
THREE West Midlands shoes stores closed this week as others in the region face an uncertain future after administrators were called in.
Jones Bootmaker was immediately sold to private equity house Endless in a process known as a pre-pack deal after administrators KPMG were called in.
As a result of the rescue deal 25 under-performing stores and six concessions closed, including the group’s outlets at Grand Central in Birmingham, the Merry Hill centre in Dudley and Sutton Coldfield town centre with the loss of 34 jobs.
However, a further 72 shops have been saved from closure by Endless, preserving around 840 jobs.
Will Wright, KPMG partner joint administrator, said: “We and are delighted that we have been able to rescue such an iconic UK footwear brand as Jones Bootmaker, including a high proportion of stores and preserving a large number of jobs, especially given the current economic pressures faced by retailers across the UK. This deal recognises the value of Jones as a strong and popular high street brand with a loyal customer base.”
Joint administrator Steve Absolom added: “While it is always pleasing to preserve a significant number of jobs, sadly a number of redundancies are to be made at the closed stores. Over the coming days, our priority is to ensure all employees who have been affected by redundancy receive the information and guidance they need in order to claim monies owed from the Redundancy Payments Office.”
Jones Bootmaker was acquired in 2015 along with shoe shop chain Brantano by Alteri Partners, a London-based firm which specialises in working with distressed retailers.
Brantano has also been placed separately in administration, with financial services firm PwC controlling its affairs and trading the business as usual as it assess the options.
This has placed almost 1,100 jobs at risk after the firm struggled with a “depressed and competitive footwear market”, according to PwC.
The group has 18 stores and 14 concessions which employ 244 staff across the Midlands, including in Stirchley, Yardley, Walsall, Oldbury and Tamworth.