A takeover bid of handbag and footwear business Jane Shilton has fallen through at the last minute, leaving the future of the company uncertain.
The deal, which would have seen footwear company Shoon and backers GA Europe take over the business, would have resulted in the refinancing of 39 Jane Shilton department store concessions across the UK from 31 July.
But a source close to the situation told Drapers the takeover had been called off, following “heated” discussions between the two parties.
“It has been a really difficult year for the footwear industry and the scale of the deal has been a major factor [in the deal falling through],” the insider added. “Shoon and GA Europe had an opportunity to rethink the situation and decided they can’t support it.”
IThe collapse of the takeover comes at a bad time for Jane Shilton, which for the year to June 30, 2012 made a pre-tax loss of £1.9m, and a loss of £575,000 the previous year. Turnover for the period was £14.7m, down 3.2% from £15.2m the year before.
In a statement released at the time Jane Shilton, which operates concessions in retailers including Beales and Browns of York, said the poor results came as a result of the wider trading environment, blaming “unseasonal and disruptive weather patterns” for the further lost revenue.
The business also had to write down nearly £750,000 as an exceptional charge from its footwear concessions business, as part of its plans to sell to Shoon.
Shoon declined to comment and no one from Jane Shilton was available.