Brantano collapse puts 1,100 retail jobs at risk

Brantano has fallen into administration, placing almost 1,100 jobs at risk.

The footwear and accessories retailer had been the subject of a bid by its larger rival, London-listed Shoe Zone (Other OTC: SHEZF - news) , ahead of the announcement.

Sky News reported that Shoe Zone had been vying with Edinburgh Woollen Mill to buy Brantano a week after its private equity owners, Alteri, filed a notice of intention to appoint administrators last week, 24 hours after sister brand Jones Bootmaker was made the subject of an identical move .

In total, more than 2,000 jobs are at risk from the collapse of both chains, which have been hit by weak trading on an increasingly nervous UK high street and rising import costs.

Brantano's administrator, PwC, said redundancies at the chain, which has 73 stores and 64 concessions, would be "inevitable" though trading woulkd continue as normal for the moment and all staff would be fully paid.

Tony Barrell, lead administrator at PwC, said: "Despite significant improvements in the business and reductions in the cost base, trading has continued to suffer in a depressed and competitive footwear market.

"Like many other retailers, Brantano has also been hit hard by the sharp decline in sterling, the ongoing shift in consumer shopping habits and the evolution of the UK retail environment."

It is unclear whether interest remains in taking over parts of the Brantano business.