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Melbourne-based The Shoe Group (TSG), known for such brands as Jo Mercer, Wild Rhino, Corasol and Novo, has officially taken control of a shoe company whose history spans more than century after securing a deal with administrators to Wittner.
Deloitte Turnaround & Restructuring partners David Orr and Sal Algeri were appointed as administrators to Wittner in April, and in June announced they had entered into exclusive negotiations to sell the majority of the business to TSG.
Deloitte has revealed that the transaction provided for under a Deed of Company Arrangement (DOCA) was completed today, involving the transfer of the entire issued share capital in WGH from existing shareholders to TSG.
Wittner was initially founded in 1912 by HJ Wittner as a mail-order shoe business, and prior to administration was owned by UK-based investor Hilco. Today its website lists a footprint of 35 locations in Australia and New Zealand, including its own stores and stockists such as David Jones.
Deloitte Turnaround & Restructuring partner and transaction lead Daniel Demir says completion of the sale and recapitalisation process represents a new chapter for the iconic Australian brand and its employees.
@We are pleased that this much-loved heritage brand has found a new home in TSG," says Demir.
"The success of the sale, which occurred in the context of a challenging retail environment, will allow for the continuation the majority of the Wittner business including retail stores and concessions, as well as the retention of over 170 employees.”
Deloitte's team was assisted in the transaction by Gilbert + Tobin, working closely with its restructuring and insolvency co-head and partner Peter Bowden, with support from partner Anna Schwartz and lawyers Andrew Fay, Meg Parry and Katerina Kovalenko.
"We are very pleased to have supported the Deloitte team in preserving the Wittner business and delivering this result for the Wittner Group’s stakeholders. This is another excellent example of our team’s strong retail capability, and we congratulate all parties involved," says Bowden.
"The sale has also delivered a positive outcome for creditors, landlords and concession partners and we are thankful for their support throughout the administration period," adds David Orr, one of the administrators.
We also extend our thanks to the Wittner team, our Deloitte team and to the Gilbert + Tobin team for their invaluable hard work over the last three months in securing a future for Wittner."
Ultimately owned by Hong Kong-based entity Swas Investments, TSG has a a diverse portfolio of brands as well as its own extensive retail store network, direct online and marketplace sites, and wholesale customers.
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