Footwear retailer Shoon has entered into a Company Voluntary Arrangement in an attempt to ensure its survival.
Insolvency firm Leonard Curtis is overseeing the CVA, which is subject to a vote by creditors and shareholders on May 22.
Shoon’s managing director Mark Pinnock told Drapers: “It’s part of the restructuring of the business and a result of the previous management’s decisions. It’s the right process to move forward with and will protect the core part of the business, which is healthy.
“The strategy will involve some store closures, but there will be minimal redundancies.”
Shoon has 10 stores and employees 160 people in total.
It made a pre-tax loss of £1.3m on sales of £8.3m for the year to February 1, 2014, according to the most recent accounts filed at Companies House.
Pinnock acquired the struggling retailer from industry veterans Ken Bartle and Peter Phillips earlier this year with backing from investment firm Tnui Asset Finance. Since then four of the 12 head office staff have been made redundant, but none of the store workers have been affected to date.
Pinnock was previously director at Essex-based catering company Savills Catering and recruitment firm for the transport industry Prima Services Group.
Bartle and Phillips, who previously ran footwear chains including Jones Bootmaker, Stead & Simpson and Gordon Scott, bought Shoon and its debts from restructuring specialist GA Retail in January 2014. GA Retail had supported a management buyout of Shoon in May 2012 after it fell into administration.
However, Bartle and Phillips decided to sell the chain earlier this year after Phillips suffered a spell of ill health.