Belgian shoe chain Brantano on Tuesday said a merger with holding company Mitiska was a possibility as it looks to create a new structure for the group.

The company issued a statement in response to reports in De Standaard newspaper that Mitiska, which holds a 41 per cent stake in Brantano, will merge with the footwear retailer and increase its capital in 2003 to reduce the group's debts and improve its balance sheet.

"Together with Mitiska, the board of directors of Brantano is considering a new structure aimed at determining the focus of Brantano and safeguarding its future," it said, adding it has yet to draw up specific plans.