The owner of Hotter Shoes has taken itself off the market after no potential offers were received.
Unbound Group said it is now "assessing the feasibility" of raising between £1.5m and £2m to support [the] implementation of a formal restructuring plan, with a view to securing a better outcome for the group".
The Skelmersdale-headquartered company added that its revenues continue to be impacted by "liquidity constraints" and that it remains "reliant on the waiver of certain covenants under existing borrowing facilities and continues to maintain constructive dialogue with its core banking partners who have continued with their support throughout this period".
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In May, the group put itself up for sale as it warned it could struggle to pay its upcoming bills.
The group appointed Interpath Advisory to act as joint financial adviser alongside Singer Capital Markets Advisory LLP to manage a strategic review and formal sale process.
The move came after the group missed out on a planned £10m investment earlier in the month after the offer was withdrawn because of concerns over its current trading.
It also suffered a blow when a knitwear and jersey brand backed away from a possible £7m takeover.
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In a new statement to the London Stock Exchange, the group said: "The board is, however, encouraged that the profitability of the business in recent months has been in line with the board's expectations.
"The positive impact on the profitability of the group of the implemented cost reduction measures is now becoming increasingly evident in its financial performance.
"In the first four months of the current financial year, the group's fixed cost base has been reduced by 9% year-on-year, with this saving expected to increase as additional cost reduction actions take effect.
"Following the seasonally loss-making months of February and March, the group generated unaudited EBITDA (pre-IFRS 16) of approximately £1.1m for April and May combined, an EBITDA margin of 14%, an improvement from 9% in the prior year period.
"For the first four months of the financial year, the group is at EBITDA breakeven."
Shares in the group fell by almost 10% in early trading.