Yorkshire shoe firm Barratts slips into administration for third time in four years

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

Philip Duffy and David Whitehouse, of financial advisory and investment banking firm Duff & Phelps, were appointed administrators on Friday afternoon.

The administrators said they were reviewing the company’s financial position and seeking a sale of the business as a going concern but said: “At this stage redundancies and/or store closures cannot be ruled out.”

Barratts Shoes operates from 75 stores and 23 concessions across the UK and Ireland, employing 1,035 people, 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“The company had recently received an offer from an investor to inject £5m into the company but that offer was withdrawn on the evening of November 7.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. Attempts to find a buyer for its concessions business failed, but in January last year a deal was agreed to save most of the stand-alone store chain.