Australian shoe brand Betts is back in business under the original family owners after receiving “overwhelming” support from creditors who backed a rescue deal.
According to administrators at Pitcher Partners, the $13.3 million deal will mean the 134-year-old brand will continue with a streamlined physical retail footprint and a focus on building its online channel.
Six more stores are expected to close by November 9, including NSW stores Betts Charlestown Square, Charlestown; Betts Castle Towers, Castle Hill; and Betts Sydney Central Plaza, with sales of up to 90 per cent to clear stock.
Meanwhile, the remaining nine non-closing stores will have discounts between 40 per cent and 70 per cent.
Betts CEO and managing director Michael Breckler said the family had been overwhelmed by customer support during four months in voluntary administration, with some stores seeing sales triple.
“I’m incredibly grateful to our amazing team, loyal customers and creditors for their support through what has been a very challenging period,” he said.
“Their belief in Betts has meant everything. To have the opportunity to take our family business into an exciting new chapter, with the founding family still at the helm, is something I’m immensely proud of.”
Voluntary administrator Lindsay Bainbridge, of Pitcher Partners Melbourne, said creditors had backed a binding DOCA from the Betts Group that included an injection of funding and financial commitments.
It will see the Breckler family remain in control of the shoe business that was started five generations ago.
“In what is a really difficult time for Australian retail, this has been a good news story,” he said.
“Betts has closed its underperforming stores, it has restructured its operations, and the family has put together a deal that offers a good return to creditors.”