Administration to present day
A couple of years later, when recession struck, Mirman and Ross discovered that their equity (worth £50 million in 1988) had become valueless, and were overwhelmed by debts.[2] In 1990, the business entered administration and BDO Binder Hamlyn took over. 58 shops, including 17 outlets in the United States (14 in New York City alone) were closed down, and discussions were entered with interested parties to try to get new funding capital for financing expansion in Europe.[3] Despite the closures, administrators recommended Mirman to be retained in a key role, praising her business acumen.[4]
In August 1990, the business, 85 shops, and the French subsidiary were purchased for £3.25 million (plus an injection of £3.75 million working capital) by a consortium backed by Scottish fund manager Murray Johnstone. The company was renamed SockShop Holdings. Unsecured creditors and shareholders in SockShop International received no money from the sale. The chairman for Murray Johnstone Developments, Fred Dalgarno, blamed the expense of the US operation and over-expansion for Sock Shop's problems. Having shed the burden of their debts, it was planned that SockShop Holdings be expanded more cautiously.[5]
SockShop Holdings fell back into the administrator's hands a second time after becoming part of the Facia Group, a retail conglomerate of 850 shops and 80,000 employees that collapsed in 1996 with debts of £70m due to the fraudulent actions of its owner, Stephen Hinchliffe.[6] It was subsequently acquired by the Tulchan Group.
In 2003, SockShop (by then reduced to 13 stores across the UK) was bought for £3.9 million by the Birmingham-based firm of Harris Watson Holdings. The firm collapsed a third time in 2006. The administrators, Poppleton & Appleby, were brought in on 25 January 2006 to try and salvage the dramatically reduced company. This third collapse was attributed to substantial losses as a result of a slowdown in consumer spending and a rise in running costs.[7] In February 2006, following administration, it was bought by Osan Ltd which is a subsidiary of Ruia Group.
