Foot clinic and comfort footwear retailer Shuropody is planning to enter into a company voluntary arrangement (CVA) for the second time in just over a year, Drapers understands.
Mark Pinnock, managing director of the Coventry-based firm, has contacted suppliers notifying them of his intention to enter into a CVA with creditors. If approved it would be the second CVA for the firm since April 2017.
In a letter to suppliers seen by Drapers, Pinnock said he had reached an agreement with Shuropody’s investors, Tnui Asset Finance and Business Growth Fund, to continue to support the business. However, this was “conditional on a company voluntary arrangement being agreed by its creditors, which will also involve a change in the shareholding structure whereby I will no longer be the controlling shareholder”.
Pinnock added: “If the CVA is not approved, the company will go into administration.”
Tnui and Business Growth Fund backed Pinnock’s footwear retailer Shoon’s purchase of Shuropody for an undisclosed sum in 2016.
In April 2017 Shuropody filed a notice of a CVA. Creditors that were owed a total of £17.7m backed the proposals, while those representing £447,971 voted against. In the 2017 CVA, Tnui Asset Finance was listed as being owed £5.9m.
Documents filed with Companies House show Shuropody also owed £287,760 in wage arrears at the time.
Accounts filed for the year to 31 January 2017 show that Shuropody registered £16.3m in sales, down from £16.8m in 2015/16, leading to an operational loss of £1.03m, down from £1.7m in 2016. The accounts, which were filed in November, state that the firm operated 50 stores UK-wide.
Shoon went into administration in November 2017 with the loss of around 45 jobs.
Pinnock has been contacted for comment.