After Unbound Group PLC (AIM:UBG) said last week that it may file for administration, reports have emerged that talks are underway for its Hotter Shoes chain to be acquired by private equity-owned brand Woolovers.
Sussex-based Woolovers could buy Hotter through a 'pre-pack' administration, Sky News reported.
Talks have been taking place with Interpath Advisory, the administrators that Unbound was looking at appointing, the report said.
Last week, Unbound said going into administration was “one of a number of options” it was exploring, depending on discussions around a formal restructuring plan or potential equity funding.
A pre-pack sale involves negotiating the sale of assets before the appointment of administrators, with the process completed either immediately upon the appointment.
Selling Hotter via a pre-pack sale could enable Unbound to stay out of insolvency proceedings, sources told Sky.
Woolovers, which is owned by Verdane, a European investment firm, tried to buy Hotter solvently in April but was trumped by a rival offer that was subsequently withdrawn.
Unbound shares are currently suspended.