Jones Bootmaker, the traditional footwear retailer with over 100 branches across the UK, has been sold to private equity firm, Endless, saving 840 jobs.
Administrators KPMG, announced that Endless will acquire 72 stores, from another private equity firm, Alteri, securing around 840 jobs in the UK.
A further 25 under-performing stores and 6 concessions are not part of the sale and will close immediately, resulting in 262 job losses, KPMG said in a statement on Saturday.
Alteri, which bought Jones in October 2015, sold the profitable parts of the business in a “pre-pack” deal which means the sale is agreed before administrators are called in. Pre-packs have been criticised because they allow company directors to write off its debts but quickly sell off the profit-making parts of the business.
Will Wright, partner at KPMG and joint administrator, said: “We are delighted that we have been able to rescue such an iconic UK footwear brand as Jones Bootmaker, including a high proportion of stores and preserving a large number of jobs, especially given the current economic pressures faced by retailers across the UK.”
The administrators said they would provide the employees who have lost their jobs with information and guidance to allow them to claim redundancy money.
Jones was put up for sale last month, but a series of “cash flow challenges” throughout the bidding process, scuppered a potential deal, according to industry publication Retail Week. Creditors then served with a winding up petition last Friday - this is a document filed to a court, which demands the company pays back money owed. KPMG were appointed as administrators on 24 March.
Jones has been a fixture on UK high streets since it was founded in Bayswater, London, in 1857. Alteri bought the firm for £12m but it has since experienced difficult trading conditions. Alteri’s other shoe brand, Brantano, went into administration last week.
