British firm off-loads troubled shoe shops

The British Co-operative Group offloaded its troubled shoe shops business Shoefayre to rival discount chain Shoe Zone today.

The sale comes after Shoefayre, which was set up in 1959 as a co-operative footwear retailer, reported operating losses of more than £6m (€8.8m) last year.

The Co-op, which did not disclose the price tag for the business, said sales at the chain had suffered amid increasing competition and difficult trading conditions in the footwear market.

It added that the business was not a core part of its operations and needed considerable investment over a long period of time to put the firm back on a sound financial footing, while the prospects of achieving this remained uncertain.

The group said: “In the circumstances, sale of the business to a well-known and profitable footwear retailer is both logical and desirable.”

Co-op took full control of the company in 2005 from a group of co-operative shareholders, and launched a recovery programme to try to cut costs and improve the ranges.