(Sharecast News) – Privately-owned clothing brand Woolovers is reportedly in talks to buy footwear company Hotter Shoes.
According to Sky News, Woolovers – which sells knitwear, jewellery and home accessories, and is backed by European investment firm Verdane – could acquire Hotter through a pre-pack administration as early as Tuesday afternoon.
City sources told Sky that a deal was “likely but not certain” to be struck with Interpath Advisory, the restructuring firm which has been lined up as administrator to Hotter’s parent company, Unbound Group.
One insider added that a pre-pack sale of Hotter would enable Unbound to stay out of insolvency proceedings while its board considers options for its future.
Last week, Sky News revealed that Unbound was on the brink of collapse as it sought up to £2m in funding from shareholders.
The company confirmed in a stock exchange announcement on Monday that it had resolved to file a notice of intention to appoint administrators and requested a suspension of its shares.
Woolovers tried to buy Hotter solvently in April but was trumped by a rival offer that was subsequently withdrawn.