Hunter Boot, a renowned high-end fashion footwear brand, recently faced a crippling debt of £112.8 million before eventually collapsing into administration earlier this year. The 160-year-old British company, famous for its luxury wellies and its association with summer festivals, was saved from complete demise through a pre-pack administration deal worth nearly £100 million with Authentic Brands Group, the US owner of Ted Baker. The collapse of Hunter Boot can be attributed to various factors including reduced demand, the impact of the pandemic, supply chain disruptions, and inflationary pressures.
A proposal report by the administrators, AlixPartners, provided detailed information about the company’s debts. Unsecured creditors, such as suppliers and landlords, were owed a total of £16.9 million. Well Fargo, the primary lender for Hunter Boot and a US bank, was owed a staggering £98 million. Pall Mall Legacy, an investment fund backed by Goldman Sachs, was owed £11 million, while HMRC was owed £140,747. As secured creditors, they are expected to recover most of their owed amounts.
The report also revealed that Hunter Boot’s store in Bicester Village, located in Oxfordshire, was not included in the sale and subsequently had to close. AlixPartners further mentioned that the possibility of Hunter Boot opting for a company voluntary arrangement (CVA) was not feasible. Unfortunately, as a consequence of the administration, 11 out of the company’s 121 employees were made redundant, leaving the remaining staff members at risk.
Despite the unfortunate circumstances, the acquisition of Hunter Boot by Authentic Brands Group provides a glimmer of hope for the brand’s future. Authentic Brands Group has a successful track record in managing fashion brands and the addition of Hunter Boot aligns with its strategy of expanding its portfolio of premium brands. While the collapse of Hunter Boot serves as a reminder of the challenges faced by the fashion industry, it also highlights the volatility caused by economic fluctuations and the ongoing pandemic.
Moving forward, it will be interesting to observe how Authentic Brands Group navigates the restructuring process and implements its plans to revitalize the Hunter Boot brand. As the fashion industry continues to evolve and consumer demands shift, Hunter Boot must adapt its offerings accordingly and capitalize on emerging trends in order to regain its position in the highly competitive market. Only time will reveal if this once-iconic footwear brand can make a triumphant comeback.
Useful links:
1. Hunter Boot Official Website
2. Authentic Brands Group Official Website
