John Kinnaird, the retail entrepreneur who led the rescue of footwear chain Faith last week, has dismissed market speculation he plans to slash head office costs and insists suppliers are back on board with Faith for the long term.
Kinnaird told Drapers the Faith business he had bought was only “slightly broken” and that he was happy with the people in the business.
He said: “Faith as a business performs not too badly. It just had a mountain of debt to service. The chain itself only loses £1 million.”
He added: “We’ve seen 90% of suppliers and talked about the issues Faith had and how we move forward. We haven’t lost one supplier yet.”
Kinnaird denied speculation that he would look to position Faith against Barratts. He said: “We don’t intend to change much. The shops look good and Faith is a great brand. There may be changes to about 5% of the range at either end of the scale and there is not enough day-to-day product. We will also add more accessories and handbags.”
He added “Last year the margin was 54 because the business was very promotional. I think we can gain five or six margin points this year and three or four more in the second year. Then the business will be sorted.”