Footwear retailer Wittner enters administration, seeks new buyer
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The news: Iconic Australian shoemaker, Wittner, has called in administrators as rising costs and dropping has seen the business collapse.
The numbers: Wittner has over 20 stores in Australia and New Zealand, and 25 concessions within David Jones and Myer.
The context: Wittner’s loans were purchased by British special situations investors Hilco Capital in 2020 with hopes that it would continue trading, and in 2022 Hilco exercised an option to hold a majority equity stake in the business. Hilco is the same company that bought Cue Clothing from the Levis family earlier this month.
According to media reports, Sal Algeri and David Orr, restructuring partners at Deloitte have been brought in to lead the administration.
A company statement on the news says trading will continue on a business-as-usual basis while administrators review the group’s finances and seek expressions of interest on potential sale or recapitalisation options.
Despite growing online sales, rising labour and utilities costs including rental fees proved too burdensome for the brand. “We have invested in our range and teams over the last 12 months and remain committed to the Wittner business. We will work closely with the administrators to achieve the best outcome for the business,” the statement reads.
“We have invested in our range and teams over the last twelve months and remain committed to the Wittner business. We will work closely with the Administrators to achieve the best outcome for the business and its stakeholders.”
The company was founded in 1912 by HJ Wittner, and became the country’s first mail-order footwear business.
The sources: AFR, news.com.au
