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Suppliers fear losses from Shoon administration

Brands have expressed concern over the future of footwear retailer Shoon after it fell into administration last week.

As exclusively revealed by Drapers, the retailer filed notice of its intention to appoint administrators on 21 November at the High Court.

The business fell into administration on 24 November.  Four of the retailer’s stores and concessions were sold to The Shoot Shoe Company. The remaining six stores and concessions shuttered with the loss of 45 jobs. The website is still currently operational. 

Some footwear suppliers told Drapers they were owed “significant” sums of money.

“We are owed a lot of money. A few weeks ago, [Shoon] made an announcement saying it was up for sale and no payments would be made until the sale was agreed,” said one supplier.

“Bearing in mind the losses we are owed, it is difficult to support [it]. We have pulled all our stock out of the stores and concessions. We also supply Shuropody, so it’s a real question as to whether we will continue to do so.”

In June 2016 Shoon bought foot clinic and comfort footwear retailer Shuropody for an undisclosed sum. Shuropody is not thought to be affected by the administration.

Another supplier to Shoon and Shuropody said he was “very worried”: “They have gone very quiet. My goal is to collect the money we are owed, and I will never supply either of them again. I imagine I’m not the only brand that feels this way.”

One women’s footwear brand stocked by Shoon said: “We have removed our stock from their stores to try and de-risk the situation and minimise our exposure, but we are still owned money. I get a sense that a lot of bridges have been burned. It is a shame to see another footwear multiple going in this direction.”

Shoon owner Mark Pinnock has yet to respond to the suppliers’ comments.

Shoon completed its second company voluntary arrangement since 2015 on 27 July.

In its most recent results filed on Companies House for the year to 30 January 2016 turnover dropped 20% to £6.8m. The business made an operating profit of £575,402, up from an operating loss of £1.3m in 2015.

Pinnock bought Shoon in April 2015 after industry veterans Ken Bartle and Peter Phillips put it up for sale in January 2015.

Pinnock, who was backed by investment firm Tnui Asset Finance, was previously director at Essex-based catering company Savills Catering and recruitment firm for the transport industry Prima Services Group.

At Shuropody turnover in its most recent accounts for the year to 31 January 2016 dropped 14% to £16.8m. The group made an operating loss of £1.7m, compared with a loss of £1.5m the year before.

 

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