Mark Pinnock, the new managing director of footwear chain Shoon, has said the business will turn a profit by the end of the year but warned “tough decisions” will need to be made.
Pinnock, who acquired the struggling retailer from industry veterans Ken Bartle and Peter Phillips, said Shoon was a “good proposition” but cost saving measures would need to be implemented in order to make it profitable, including store closures and redundancies.
Shoon 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 said: “It’s obvious from the turnover that it would be a good little business if we put some hard work in. We are looking at each of the stores individually as each one has to be profitable and at the moment some are propping up others.
“Unfortunately tough decisions mean losing some people, but I’m confident the business will turn a profit by the end of the year.”
Shoon has 160 employees in total. Since Pinnock took over the business four of the 12 head office staff have been made redundant, but none of the staff in its 10 stores have been affected to date.
Pinnock has been backed by investment firm Tnui Asset Finance. He was previously director at Essex-based catering company Savills Catering and recruitment firm for the transport industry Prima Services Group. Accountancy firm BDO advised Shoon on the sale.
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.