Shoe chain Faith could be sold in a fire-sale, after lenders to its owner Bridgepoint appointed restructuring specialist FTI Consulting.
According to The Daily Telegraph, Barclays – which is owed about£25 million by Faith – turned down a bid by Bridgepoint for a debt-for-equity swap. The move to appoint FTI could see the 85-store chain sold out of pre-packed administration.
Bridgepoint offered to inject£8 million into the retail business in return for capital restructuring, but Barclays is said to have asked for a sale process to benchmark the value of its loan. Bridgepoint bought Faith in 2004 for£64 million and has already had to inject an extra£15 million of equity to help the struggling chain.
It has been a turbulent year for shoe retailers, with both Dolcis and Stead & Simpson falling into administration.
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