When news happens, text LT and your photos and videos to 80360. Or contact us by email or phone.
Cloughfold company Famous Footwear collapsed owing £11m
5:00pm Wednesday 16th January 2013 in News
A CLOUGHFOLD retailer which operated a chain of 45 shops across the country collapsed owing creditors more than £11million.
Famous Footwear, which has its headquarters in Bacup Road, has axed 250 jobs after bad debt forced it to appoint administrators to its 21 shops, and 24 store concessions, in December. The firm has managed to secure a deal with high street footwear chain Barratts for 14 concessions in department store Beales, saving 50 jobs.
Famous Footwear was previously a division of the Stead and Simpson chain, but a new company was incorporated to purchase some of its assets in January 2008. A report by administrators Duff and Phelps said the firm, which had a turnover of £15million, had been loss-making at various times during its trading history.
It said: “While various turnaround strategies had been implemented, including the appointment of an experienced managing director and increased outlets, sales started to decline during the last quarter of 2011.
“This trend continued throughout 2012.”
Non-preferential creditors were owed just over £5million at the time of the administration, almost all of which is unlikely to be repaid.