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Shoon – a little-mentioned footwear retailer in the press over the past year – has been making headlines in recent weeks having worked quietly to return to profit. FSP takes a look at this retailer and the changes it has made to get this far.
Not without its chequered past, Shoon has suffered with a number of spells in administration and changes in ownership since its incorporation in 1982. Most notably was when retail veterans Ken Bartle and Peter Philips bought Shoon in January 2014 to continue its turnaround following an administration two years earlier. However, just one year later, the ‘for sale’ sign was again hoisted above Shoon due to Philips suffering ill health.
Shoon was subsequently acquired by businessman Mark Pinnock in April 2015. In May 2015, Pinnock took the decision to file for a Company Voluntary Arrangement in order to restructure the business and protect the core parts of the business which were healthy. Shoon’s CVA proposal was then approved by more than 80% of unsecured creditors, resulting in some store closures, and rent concessions affecting the Brighton, Kingston, Reading, St Albans and Tunbridge Wells stores.
Now one year on from the CVA, and Shoon is making a “small profit” and sales are up 2% to 3% on last year, and there are plans to open a further three shops this year in southeast England. Pinnock has his eye on six stores in other locations across the UK for 2017.
In Shoon’s case, the CVA route was the right direction to take to ensure its survival, and it seems that the hard work undertaken to restructure the business is paying off, and means that the high street doesn’t lose another valuable retailer.
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