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Wittner is facing a major financial crisis as it enters voluntary administration with millions owed to creditors.
Australian footwear brand Wittner is now under voluntary administration, with recent filings revealing $25 million in debts to a range of creditors. Deloitte Turnaround & Restructuring partners Sal Algeri and David Orr have been appointed as administrators to oversee the process.
Major Debts and Creditors
ASIC documents obtained by Ragtrader show:
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$13 million owed to Hilco Capital, Wittner’s owner and the new owner of Cue and Veronika Maine.
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Nearly $1.5 million in loans to related parties.
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$3.65 million owed to the Australian Taxation Office.
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$45,163 in payroll tax.
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$6.8 million to trade creditors, including landlords, utilities, technology providers, suppliers, and banks.
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$965,000 in employee entitlements, including $392,000 in annual leave and $366,000 in long service leave.
Wittner entered administration with $6.4 million in stock, just over $400,000 in cash, and more than $900,000 in rental deposits.
Money Owed to Wittner
At the time of entering administration, Wittner owed $318,303.44 from Myer, David Jones, and The Iconic. The current status of these receivables is not confirmed.
Brand Background
Founded in 1912 as Australia’s first mail-order footwear business, Wittner now operates:
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Over 20 branded stores in Australia and New Zealand
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More than 25 concession stores in David Jones and Myer
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A strong e-commerce platform, including Myer, David Jones, and The Iconic
Wittner has a large customer base, comprising over 300,000 Wittner Co. Rewards members and more than 400,000 social media followers.
Company and Administrator Statements
Wittner said cost pressures drove the decision to enter administration:
“Wittner is a heritage brand with a rich history of over 100 years in the Australian footwear market,” the company shared in a statement. “Over the last twelve months we have achieved strong growth in online sales, and significant sales growth from the expansion of sites across the Myer network.
“However, the growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions.
“We have invested in our range and teams over the last twelve months and remain committed to the Wittner business. We will work closely with the administrators to achieve the best outcome for the business and its stakeholders.”
Joint administrator Sal Algeri highlighted the focus on stability and the ongoing search for new investors:
“We understand the appointment of administrators will be particularly concerning to Wittner’s employees, as well the very loyal customer base it has built over decades,” Algeri explained.
“Please be assured that trade will continue on a business-as-usual basis as we conduct an urgent review of the group’s finances and seek expressions of interest (EOI)s from parties interested in the sale or recapitalisation of this iconic Australian brand,” Algeri added.
What’s Next
Administrators are actively seeking a sale or recapitalisation. Wittner’s long history and loyal customer base are strong indicators of its importance in the Australian retail sector.
