Barratts Shoes enters administration again

Barratts Shoes has gone into administration for the third time in four years, putting more than 1,000 jobs at risk in Ireland and Britain.

Directors at the Bradford- based chain were left with no choice after an investor pulled out of a plan to inject £5m (€5.96m) at the end of last week as the company sought to shore up its finances, a statement said.

Philip Duffy and David Whitehouse of Duff & Phelps were appointed as administrators on Friday.

They said they were seeking a sale of the business as a going concern but added: “At this stage redundancies and/ or store closures cannot be ruled out.”

Barratts Shoes operates from 75 stores and 23 concessions across Ireland and the UK, employing 1,035 people, of whom 521 are part-time, the statement said.

Staff have been informed and stores are trading as usual but further announcements on the future of the chain’s outlets are expected in the next few days.

Recent reports suggested that Barratts owner and boss Michael Ziff was seeking cash to pay for stock without which it would be running perilously low during the crucial run-up to Christmas.

Mr Duffy said: “Difficult trading conditions in the sector led the directors to explore potential refinancing options and additional equity for the business.

“The company had recently received an offer from an investor to inject £5m into the company but that offer was withdrawn on the evening of Nov 7.

“In view of the financial position of the company and withdrawal of that equity offer, the directors were left with no choice but to appoint administrators.”

It comes nearly two years after the footwear chain last went into administration, in Dec 2011.

Attempts to find a buyer for its concessions business failed, costing 1,600 jobs, but in January last year a deal was agreed to save most of the stand-alone store chain — though with the loss of 680 jobs.