Dolcis is facing a crucial week as it remains locked in negotiations with a potential new backer.
Dolcis boss John Kinnaird said the banks are aware of the situation and said he is aiming for funding to be secured before the middle of next week. “Nobody wants the alternative. We’re confident our potential investor would have said by now if they didn’t want to get involved,” he said.
Kinnaird has put any acquisitions on hold until a backer is secured. He was in talks before Christmas to buy Famous Footwear from Stead & Simpson.
Stead & Simpson, owner of Shoe Express, subsequently put its business up for sale. It is understood the existing management have considered an MBO.
Separately, most value fashion players claim to have emerged from Christmas relatively unscathed. Retailers have reported clean stock levels and flat margins and profits in December.
Ethel Austin chief executive Simon Cooper said December like-for-likes were up 3.5 per cent.
“Although the value sector is hard, we had an unbelievable December 23 and Christmas Eve,” he said.
Dominic Galvin, chief executive of Baugur-owned MKOne, said the fourth quarter was “tough”, but Christmas was “better than expected”.
QS boss David Pidgeon said like-for-likes in the three months to the end of December were “marginally ahead” of the market.
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