Value footwear retailer Shoe Zone is writing down the value of its properties by 36.9% to £5.3m, and its chief executive Nick Davis has quit.
The board conducted a review of its freehold property valuations and concluded that it will be taking a write-down in the value of its 17 freehold properties, by £3.1m to £5.3m.
Davis’ departure is effective immediately. Anthony Smith, executive chairman, will resume the chief executive role, while chief operating officer Charles Smith will replace Smith as interim executive chairman.
Shoe Zone has also warned it will miss full-year expectations this year.
“While the big-box and digital growth elements of the group’s strategy are progressing strongly, in the short term their performance has been offset by the tough high street trading environment,” the company said.
“The pressure on the retail property market has enabled Shoe Zone to achieve an average 23.5% fall in rents on renewal and average outstanding lease length of only two years. As a consequence of this and the tough freehold property market, our freehold assets had to be revalued to represent fair value and give us future flexibility.”
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