Dolcis enters administration

Dolcis has appointed KPMG as the administrator. Joint administrator and KPMG restructuring partner Brian Green said: “Dolcis is a well recognised, long established high street brand so we are hopeful of finding a buyer for it.”

KPMG is reviewing the business and will seek to continue to trade from as many of the 185 stores as possible. Green said: “Dolcis is to some extent a victim of the tough trading conditions in which the retail sector is operating. Earlier this month, KPMG and the British Retail Consortium reported that footwear sales fell for the third consecutive month in December, with the mass-market hit hardest, as even large discounts failed to tempt sufficient customers.”

Dolcis fell into trouble just before Christmas when its backer Epic Private Equity pulled out. Kinnaird was hopeful a new backer would be found to inject about£3 million into the business.
On Friday, as exclusively revealed by Retail Week, the fate of Dolcis was to be revealed today and it is understood Kinnaird is in negotiations with fashion group Alexon to buy its struggling menswear chain Envy.

Green added: "While most businesses wait and see whether the recent dent to consumer confidence has a longer-term impact on the wider economy, the retail sector and its suppliers operate at the sharp end; feeling the impact of tighter consumer spending with more immediacy and arguably acting as an indicator of trouble ahead for other sectors.

“There are, however, a significant number of positive factors about this business to make it an attractive acquisition and any interested parties should contact us for information.”

Kinnaird bought Dolcis with the backing of Epic from Alexon for£2.7 million. Dolcis was founded in 1863 by John Upson who started selling shoes on Woolwich Town Market.