Faith pre-pack administration deal expected today
- Published: 10 September 2008 09:09
- Author: Jessica Price Brown
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- Last Updated: 10 September 2008 10:01
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Faith is expected to be rescued from administration by John Kinnaird later today
Faith is expected to be put into administration this afternoon before being immediately sold in a pre-pack deal to retail entrepreneur and former Dolcis owner John Kinnaird.
Faith, which was put up for sale by its bankers Barclays last month, is understood to have issued a notice of intent to file for administration at the court this morning and is expected to file for administration this afternoon.
Sources close to the situation told Drapers that the administration process would enable Kinnaird to get rid of some loss-making stores and wipe out a significant amount of company debt before buying the footwear chain. Kinnaird is believed to have struck a deal to take some stock as part of the rescue of the business however a significant number of suppliers are thought to have retention of title over goods.
Kinnaird is believed to be planning to slash head office costs and merge the Faith business with Envy, the branded menswear business he also owns.
Kinnaird is also expected to reposition Faith to compete more closely with Barratts, chasing slightly cheaper volume sales rather than focusing on more premium fashion styling.
Agilo, the investment firm believed to be backing Kinnaird to buy the Faith business, yesterday incorporated a new company called Faith Shoe Group at Companies House.
In 2006, Kinnaird bought the Dolcis footwear chain from Alexon but it subsequently fell into administration earlier this year after struggling to compete with high street fashion chains selling footwear.
To read an in-depth analysis on Faith and its history click here. Check back for more.
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