Jenny Davey
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DOLCIS, one of Britain’s biggest shoe chains, is understood to be in rescue talks with its lenders about an emergency financial restructuring.
The loss-making chain was bought last December by Scottish entrepreneur John Kinnaird with backing from Epic Private Equity in a £2.7m deal.
It is believed to have drafted in accountants from KPMG during the last few weeks to advise on a range of options for the business amid tough trading conditions on the high street.
City sources said possibilities included injecting fresh funds into the business from an outside investor or a refinancing. They admitted that administration was a possibility, but insisted it was regarded as a last resort.
The company has 65 high-street branches and 150 concessions, predominantly in Bay Trading and Envy stores.
The chain began life on a street barrow in 1863 when founder John Upson started selling shoes in Woolwich market.
Kinnaird recently unveiled a revamped store fit at the group’s new 2,200 sq ft shop in Glasgow’s Silverburn centre.
Earlier this year Kinnaird admitted the first year of trading since the buyout had seen “quite a big loss” and that Dolcis had yet to break into profit.
News of the rescue talks came as it emerged that Langholm Capital, the private-equity group, is considering a sale or refinancing of Elvi, the plus-size ladies’ fashion retailer.
The group is understood to have hired BDO Stoy Hayward to explore options for the business, which could involve a refinancing or teaming up with a new trade partner.
Sources claimed administration was not being considered.
It is thought that BDO has already received a number of offers for Elvi.
The company recently relaunched its website which has helped to boost flagging sales.
Langholm bought the business in October 2006 in a management buy-in and buy-out that was reported to be worth about £10m.
The chain has 25 of its own outlets and 57 concessions in major department stores.
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I am still working for Dolcis and im fully committed in the company. I have had loads of comments from Dolcis customers and its so nice hearing positive comments! I love my job and yes it is sad news that they have closed some stores however they didn't close them all!!!
xoxox, Brighton,
Dolcis was a great company to work for and if it reopens i wouldnt say no! Dolcis had its problems way befor Mr Kinnaird took over. I agree with Jenny, The problem was it needed updating quickly but unfortunatly didnt happen quick enough. If you take a look up and down the country at most of the stores, they all look 20 years old and need updating, who wants to shop in those. But if you look at the silverburn store..... I know most of the flagship stores was due for the refurb over the 1st three months, meadowhall would have just opened!
As for web sales, the team there probably took more on her own via web than lots of little stores, and most of the problems with deliveries was down to the corior rather than H/O.
I think the main problem with staff at the minute is that were angry with management for a lack of comunication but look back at all the good fun times we had while working there!!
C.H, Northampton,
in response to k.Picard..
I worked for the Dolcis store in Belfast, and might i add it was a GREAT place to work. our store ran smoothly. we sold shoe care and our staff did not need training. we all loved our job and the atmosphere was great. to work in dolcis, well the belfast store anyway u needed to have a gd personality and a bit of humor, two things that seem to be lackin if ur slaggin a store off in a forum.. u say micky and mouse come to mind. get a life comes to mind about u! .. dolcis was preparing to be refurbished into a more classy , appealing shop, the layout was phenomenal and in my opinion, if it had of bin done alot sooner id still be in my work right now.... i could go on forever.. people like u really get on my nerves. but just to conclude.. The streets of belfast will miss it.. and the staff wil miss it even more!!!!!!
Jenny, Belfast,
I also worked for Dolcis, and I have to say that Im not surprised. This has been coming for a long while now... Maybe Mr Kinniard should re-evaluate wether to stay in retail at all- I mean, look at what happened with Warner brothers?!
Dolcis arent capable of successfully implementing online sales as they cant even get their deliveries to stores efficiently! Their staff ALL need retraining and the executives need to hear what their store managers are telling them. And they need to re-evaluate in store operations such as re-pricing over and over again (waste of time!) and their weekly newsletter. The words mickey and mouse come to mind.
Oh and thier staff need to actually sell their shoe care and bag ranges rather than using it as shelf decoration!!!
K. Picard, London,
i worked for dolcis and its a sad loss that they closed are concession as i lost a job and my area lost its only dolcis store in the area.its a very sad time.
p.loo
rachel, birmingham, uk
Dolcis' Financial and Operational Team should look at the yield per store and compare it with the concession one.The opportunity cost and the return on investment that is established from this exercise becomes the defining factor.
Better strategic options are easily reached at the shortest possible time.
On line sales with efficient logistic systems should solve Dolcis' financial headache.
Afterall,Dolcis is a household brand
R Balloo, Sutton, Surrey