Corona, Brexit, inflation, and hot weather
be in financial straits…Selling Brands and More to Ascentics in the U.S
A 170-year-old British hunter boot called the “standard of rain boots” has gone bankrupt. After suffering financial difficulties due to a series of large-scale events such as Brexit (Britain’s withdrawal from the European Union) and the COVID-19 crisis, inflation and warm weather overlapped, it eventually collapsed. Hunter Boots, once a “British icon,” has entered court receivership, a British version of bankruptcy, after suffering management difficulties, it reported. Alyx Partners, a restructuring advisor, said in a recent document to authorities that Hunter Boots has faced serious challenges since 2019, adding that the debt was around £115 million.Hunter Boots started its business in 1857 in Edinburgh, Scotland, with a company called North British Rubber, and has been popular with the British public for nearly 170 years. In particular, Hunter Wellington Boots, a representative product sold for $175, is a product that has become famous not only in the UK but also around the world, wearing everything from the British royal family to pop stars.
Recently, interest in hunter boots has also increased as sales of rain boots have increased in Korea ahead of the rainy season.
Hunter Boots’ downfall began with COVID-19, which broke out around the same time as Brexit in January 2020. Hunter Boots, which suffered from supply chain problems at the time, tried to solve financial problems by focusing on raising cash and restructuring some ownership as sales fell 20%.However, inflation has since caused prices to soar, and last year’s abnormal temperatures have hurt demand. In fact, sales in the North American market fell 15.4% last year due to warm and dry weather in the United States.In the end, Hunter Boots sold its brands and intellectual property rights to Ascentic Brands Group, a U.S. brand management company, as part of its restructuring. The transaction volume is reported to be $125 million. Jamie Salter, CEO of Ascentic, famous for the acquisition of British luxury brand Ted Baker and global sports brand Reebok, said, “We look forward to continuing to grow the Hunter brand.”Hunter recently said through social networking services (SNS), “Hunter is going through a transition period for a while,” adding, “We will wrap up the situation as soon as possible, respond to customers’ demands, and conduct normal operations.”
JULIE KIM
US ASIA JOURNAL
