Shoe retailer Faith in administration
Footwear chain Faith collapsed into administration today in a move that puts 1,700 jobs at risk.
The ailing retailer has been put up for a sale for a number of weeks but administrators Mazars said they were called in after directors realised that a “solvent sale was not possible”. Heath Sinclair of Mazars said: "We are currently liaising with interested parties in an attempt to facilitate a going concern sale. We will be working closely with the businesses' stakeholders in an effort to preserve a well known retail brand. We are in the process of communicating with all staff, concession partners and suppliers and will seek to keep them updated as the process develops."
The young fashion footwear chain also operates 120 concessions within Debenhams and Topshop’s flagship store on Oxford Street.
The administration also hits FEC Holdings, Faith’s parent company.
In 2008 the financial health of the company was called into question after previous owners, private equity firm Bridgepoint Capital, were forced into a fire-sale after failing to reach agreement with lender Barclays. A management team led by former owner of Dolcis Shoes, John Kinnaird, stepped into rescue the firm. Bridgepoint bought the business in 2004 for £64 million from Jonathan Faith, son of Samuel Faith, who founded the business in 1964.
It is believed that
restructuring specialist Hilco has completed a deal to buy the firm’s
debt from investors and lenders.
Posted at 09:06PM Apr 22, 2010 by Kelly Board in Insolvency | Comments[0]
