COURTESY SHOES LIMITED

Risk Rating: HIGH The company is currently in a "Voluntary Arrangement" (a Company Voluntary Arrangement or CVA), which is a formal insolvency procedure. This explicitly indicates that the company has historically been unable to pay its debts as they fell due and has had to strike a legally binding agreement with creditors to settle obligations over time. Combined with a recent, significant turnover in the board of directors, the structural and financial risk to investors is severe.

Key Concerns: * Insolvency Status: The company status "Voluntary Arrangement" is the paramount concern. It confirms the business is operating under a formal insolvency procedure, meaning it is technically insolvent and surviving only at the discretion of its creditors. * Governance Turbulence: There has been a clear sweep of the board in late 2025. Three directors (including the secretary) resigned on November 29, 2025, and another director resigned in July 2026. They have been replaced by a corporate director, Modella Capital Directors Limited, and Adam Craig Foster. This mass resignation strongly suggests a change of control, potentially a pre-pack or rescue acquisition, which introduces severe uncertainty regarding operational continuity and strategic direction. * PSC Register Anomalies: The Persons with Significant Control (PSC) register lists two different corporate entities (Kicks Bidco Limited and E.Sutton & Son Ltd) as both owning more than 75% of the shares and holding more than 75% of the voting rights. This is structurally contradictory for standard share classes and suggests a recent change in ownership where the PSC register has not been properly reconciled or updated to reflect a single ultimate controller.

Positive Indicators: * Regulatory Compliance: Despite being in a Voluntary Arrangement, the company's filing obligations are currently up to date. Accounts are not overdue, and the confirmation statement is filed, indicating that the administrators or new management are maintaining basic statutory compliance. * Institutional Backing: The appointment of a corporate director (Modella Capital Directors Limited) and the presence of Kicks Bidco Limited as a PSC suggest that a corporate restructuring specialist or holding company has taken the reins. This often brings structured turnaround expertise and, potentially, secured funding to trade through the CVA. * Longevity: Incorporated in 1956, the company survived for nearly 70 years before entering its current arrangement, indicating it possesses underlying brand value or market position that the new controllers believe is worth preserving.

Due Diligence Notes: * CVA Terms: It is critical to obtain the Supervisor's reports and the original CVA proposal. This will detail the exact terms of the arrangement, the expected dividend to creditors, the duration of the CVA, and any conditions tied to continued trading. * Corporate Structure Clarification: Investigate the relationship between Modella Capital Directors Limited, Kicks Bidco Limited, and E.Sutton & Son Ltd. The contradictory PSC entries must be resolved to understand who ultimately owns and controls the company, and what their long-term intentions are (e.g., turnaround vs. asset-stripping). * Financial Trajectory: The provided data lacks specific balance sheet figures. Once the "Full" accounts for the period ending 31 December 2024 are filed (due by September 2026), they must be analyzed to assess current working capital, net assets, and the impact of the CVA on the balance sheet. * Sector Headwinds: As a specialized footwear retailer (SIC 47721), the company faces well-documented structural headwinds in the UK retail sector. The due diligence should assess whether the CVA addresses purely legacy debt issues or if the underlying trading model is fundamentally unviable.