JD Sports Fashion is to close its footwear business Cloggs, Drapers can reveal.
Its closure, which Drapers understands will happen in March, will result in around 20 redundancies.
Cloggs operates a website and three stores in Shrewsbury, Newcastle and York.
One industry source said the retailer relied too heavily on discounting: “It’s not the business it used to be. It has gone down the discount route and that doesn’t suit JD’s profile.” He suggested forward orders are being cancelled.
One brand stocked at Cloggs described the demise of the retailer as a “shame”.
A spokesman for JD Sports said: “While the current management and staff have made every effort to deliver a robust business, it is apparent that the levels of investment required to build market share and profits within this highly competitive and challenging trading environment are significantly higher than had originally been envisaged.
“The business is currently working with its people and suppliers to oversee a controlled closure, which is expected to result in fewer than 20 redundancies. We are currently working with impacted individuals to apply for vacant roles within the wider group. Brands and suppliers have been contacted separately, with the business ensuring that stocks and services provided to date are paid for in full. Closure costs are not expected to be significant.”
The sports retailer bought Cloggs out of administration in a pre-pack deal in 2015.
The business was founded in 1979 by Russell Thomas as part of The Oasis in Birmingham, described by its founder as “a 12,000 sq ft bazaar of shops”. It launched its website in 1998.
The closure is another blow to the UK footwear industry, which was hit by the collapse of Brantano and Jones Bootmaker into administration in March.