Footwear retailer Betts has emerged from voluntary administration following a $13.3 million rescue deal by the family behind the 134-year-old company.

Betts entered voluntary administration in early July after what it described as faltering retail conditions and reduced foot traffic across its then 220-strong store network.

But administrators Pitcher Partners Melbourne have secured a rescue plan in the form of a deed of company arrangement (DOCA). The deal will see Betts return with a “streamlined” approach, closing three stores in NSW, two in WA and one in Victoria. 

“I’m incredibly grateful to our amazing team, loyal customers and creditors for their support through what has been a very challenging period,” Betts CEO and MD Michael Breckler said.

Breckler added that some of Betts’ stores saw sales triple during the four months of voluntary administration.

“Their belief in Betts has meant everything,” he said. “To have the opportunity to take our family business into an exciting new chapter, with the founding family still at the helm, is something I’m immensely proud of.”

Lindsay Bainbridge, the appointed voluntary administrator, called it a “good news story” for Australian retail. The binding DOCA will include commitments for the Betts Group to inject funding into the retailer in the future.

“Betts has closed its underperforming stores, it has restructured its operations, and the family has put together a deal that offers a good return to creditors,” Bainbridge added.

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