A Dundee footwear business which has traded continually for almost 150 years could be completely wound up within months after racking up a £2.2 million loss.
Accounts published at Companies House show William Smith (Shoe Merchants) plunged further into the red in the year to January 26, after posting a £463,000 loss the year previous.
The Dryburgh industrial Estate firm, which began operating in 1867 and latterly traded under the DE Shoes and Foot Factory brands, announced in April that it was closing.
However, the company which had 136 employees at the financial year end has continued to operate in the interim period, although only three shops remain from a portfolio that once stood at more than 30.
The company accounts show the firm sustained an increased operating loss of £519,913 in the past year as overall revenues slipped marginally from £7.68m to £7.63m.
However exceptional restructuring costs of £1.69m took the overall pre-tax loss to more than £2.21m.
“The company experienced another extremely difficult year with sales decreasing further to £7.63m in 2013 and the selling margin falling from 45.8% to 45.5%. Both of these, coupled with a small increase in costs, led to an increased operating loss,” the directors said in their report to the accounts.
“Given the unsustainability of such operating losses, prior to the year end the directors carried out a strategic review of its trading business.
“As a result of this review, the directors have implemented a major restructuring programme which will result in a significant downsizing of its trading business, this being achieved through branch closures and disposals.
“The one-off costs associated with this major restructuring have been treated as an exceptional cost in the profit and loss account.
“As part of this restructuring exercise, the company’s property portfolio has been revalued using best estimate of net realisable value in the current marketplace.”
Managing director Robert Sinclair yesterday told The Courier efforts were continuing to find buyers for the company’s three remaining operational outlets in Cowdenbeath, Stranraer and Inverness.
He conceded the firm was in the final stages of a winding-up process and said he did not expect the company would continue trading after the end of the current financial year.
“While we are continuing to sell off the property it makes sense to keep some of the shops trading to cover some of the rent and rates, “ Mr Sinclair said.
“They still have the for sale signs, and if we did get offers we will seriously consider selling them off at that time.”