Australian footwear brand Wittner owes $25 million in liabilities to various creditors, according to ASIC filings obtained by Ragtrader.
This comes after the brand fell into voluntary administration earlier this year, with Deloitte Turnaround & Restructuring partners Sal Algeri and David Orr being appointed as administrators.
The administrator’s report shows that the single largest amount owing is $13 million to British special situations investor Hilco Capital. Hilco is the retail brand’s owner, which also now currently owns Cue and Veronika Maine after snapping them up earlier this year.
There are also two loans owing to related parties to Wittner, both amounting to nearly $1.5 million together.
Wittner also owes $3.65 million to the Australian Taxation Office, and $45,163 in payroll tax, as well as $6.8 million to various trade creditors. The report did not go into detail on who each of the trade creditors were, but it did confirm these include landlords, utility services, technology providers, suppliers and banks.
Alongside these liabilities, Wittner also owes around $965,000 in employee entitlements. This includes $392,000 in annual leave payments and $366,000 in long service leave, but does not include wages or redundancy payments.
The document also confirmed that Wittner went into voluntary administration with $6.4 million worth of stock on-hand, and with just over $400,000 cash on hand. The retailer also had over $900,000 worth of rental deposits.
Meanwhile, Wittner was owed money by Myer, David Jones and The Iconic at the time of entering VA, with total owings at $318,303.44, according to the ASIC documents. It has not be noted if this has changed since the VA.
Wittner was founded in 1912 as Australia’s first mail-order footwear business. Today, the brand is a multi-channel retailer with over 20 branded stores in Australia and New Zealand, over 25 concession stores across David Jones and Myer, and a multi-store e-commerce platform that trades across its own branded website, Myer, David Jones, and The Iconic.
The footwear brand reportedly has a broad customer base, including more than 300,000 Wittner Co. Rewards members and more than 400,000 social media followers.
Wittner shared a statement on its VA in April, highlighting a surge in cost pressures which led to its decision to appoint administrators.
“Wittner is a heritage brand with a rich history of over 100 years in the Australian footwear market,” the company shared in a statement. “Over the last twelve months we have achieved strong growth in online sales, and significant sales growth from the expansion of sites across the Myer network.
“However, the growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions.
“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 brand has continued to trade since falling into administration in April. Joint administrator Algeri said in April that he and his business associate Orr were working towards a sale and/or recapitalisation of the Wittner business.
“We understand the appointment of administrators will be particularly concerning to Wittner’s employees, as well the very loyal customer base it has built over decades.” Algeri said.
“Please be assured that trade will continue on a business-as-usual basis as we conduct an urgent review of the group’s finances and seek expressions of interest (EOI)s from parties interested in the sale or recapitalisation of this iconic Australian brand.”