A POPULAR British shoe brand is reportedly on the brink of collapse as a potential deal falls through.
The shoemaker, which has been worn by young royals, confirmed a potential buyer pulled out due to concerns that the conflict in the Middle East could affect sales in the UK.
Early Days, which was founded in 1952, has been looking for a buyer after recent cost hikes, with the latest suitor “put off” by rising costs, according to the Daily Mail.
The company, which operates a factory in Leicester, saw a potential deal scuppered over “a concern” that UK sales will be hit should energy bills rise once more.
Early Days’ chief executive Paul Bolton spoke to This is Money about the latest development for the company.
“I am sure it will impact consumer confidence which is already very low,” he said.
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“We are being told energy bills will be going to go up when we were only told the other day they will be going down.
“All sorts of commodities will go up in price further or be in short supply.”
Bolton added that he thinks “consumer confidence is at an all time low and it is going to get worse”.
He also revealed the potential buyer was concerned they would not be able to employ skilled staff.
“Skilled footwear staff are getting harder to find as young people just do not come into the trade as they did when I first joined the company forty years ago,” he explained.
“All our staff are in their 60’s, when they retire there is very little chance of finding skilled staff to replace them.”
Bolton said Early Days had been forced to shut due to the increase in the minimum wage and rising material prices, which forced the company to hike prices by over £3 per pair in just two years.
“Since January we have been trying to find a buyer or investor in the company to try and save the business and continue UK manufacturing,” Bolton told The Sun.
“Last week we were getting close to a deal but a number of factors including the effect the war in the Middle East will have on business caused the deal to fall through.”
The shoemaker is still looking for a buyer after ceasing manufacturing earlier this year.
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