New shoes or brakes?

I replaced the wheels which for reasons I won’t explain or relevant, meant moving them further back in the drop out. The rear shoe is now rubbing on the sidewall of the tire.

The shoe is as low as it can go. Is it a matter of getting new shoes; do look pretty worn. Or, do I need new brakes?

For reference, I’m running 700x32c.

Thanks in advance for your advice. Much appreciated.