The sale of Australian shoe brand Wittner to Spendless Shoes owner The Shoe Group has finally been completed, with over 170 employees moving under the new owners.
TSG is the owner of footwear brands and retailers such as Jo Mercer, Spendless Shoes, Novo and Wild Rhino.
Deloitte Turnaround & Restructuring partners David Orr, Sal Algeri and Daniel Demir confirmed the latest news in a media release, noting the sale was completed through a deed of company arrangement (DOCA).
Sal Algeri and David Orr were appointed as joint and several administrators of Wittner on April 16 this year and entered a period of exclusivity with The Shoe Group Pty Ltd (TSG) for the proposed sale of the majority of the Wittner business to TGS on June 13.
The final transaction involved the transfer of the entire issued share capital in Wittner Group Holdings from its existing shareholders to TSG.
Deloitte Turnaround & Restructuring partner and transaction lead Daniel Demir said completion of the sale and recapitalisation process represents a new chapter for the iconic Australian brand and its employees.
“We are pleased that this much-loved heritage brand has found a new home in TSG,” Demir said. “The success of the sale, which occurred in the context of a challenging retail environment, will allow for the continuation of the majority of the Wittner business including retail stores and concessions, as well as the retention of over 170 employees.”
The Deloitte Turnaround & Restructuring team were assisted in the transaction by Gilbert + Tobin, working closely with restructuring and insolvency co-head and partner Peter Bowden, with support from partner Anna Schwartz and lawyers Andrew Fay, Meg Parry and Katerina Kovalenko.
Orr added that the sale delivered a positive outcome for creditors, landlords and concession partners and thanked them for their support throughout the administration period.
“We also extend our thanks to the Wittner team, our Deloitte team and to the Gilbert + Tobin team for their invaluable hard work over the last three months in securing a future for Wittner.”
Amid its administration, ASIC filings confirmed the brand had owed $25 million in liabilities upon its collapse. The brand had over 20 standalone stores in its portfolio, alongside 28 concessions across Myer and David Jones upon its collapse. Following the sale, 11 retail stores and all 28 concession stores have gone across to TSG.