News: Bosses fail to keep Fishing Republic afloat
Bosses at Rotherham-based Fishing Republic, one of the largest retailers of fishing tackle in the UK, are calling in the administrators having failed to secure external funding.
The Eastwood company that floated on the AIM stock exchange in 2015 raised millions to help carry out its expansion plans. However, turnaround plans were required during 2017 to tackle "a significant deterioration in trading."
After certain major shareholders said that they were no longer willing to provide further short-term financial assistance, shares were suspended and the group's future options were being assessed in conjunction with the company's professional advisers.
An update to the stock exchange said: "Further to the recent updates on its financial position, it has not been possible to raise sufficient equity or other funding for its immediate and future working capital requirements.
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"As a consequence, the directors of Fishing Republic Trading Limited, the Company's 100% owned subsidiary, having taken advice from Leonard Curtis Recovery Limited, have today [December 6] filed an application to appoint administrators to this company. The filing of the administration application triggers a moratorium preventing most creditor or other third-party action against this company or its assets. The application is likely to be heard in Court next week at which point it is expected that Leonard Curtis will be appointed as administrators.
"Steps to appoint administrators to the Company's other 100% owned subsidiary, Fishing Republic Retail Limited, are likely to occur in due course. The directors and Leonard Curtis continue to explore options for Fishing Republic plc and no decision has yet been reached on whether it will be placed into administration."
The update adds that Leonard Curtis has already received indicative offers from parties interested in acquiring some or all of the group's assets.
Growth plans had been based on snapping up smaller competitors, opening destination stores and boosting online sales.
Fishing Republic website
Images: Fishing Republic
The Eastwood company that floated on the AIM stock exchange in 2015 raised millions to help carry out its expansion plans. However, turnaround plans were required during 2017 to tackle "a significant deterioration in trading."
After certain major shareholders said that they were no longer willing to provide further short-term financial assistance, shares were suspended and the group's future options were being assessed in conjunction with the company's professional advisers.
An update to the stock exchange said: "Further to the recent updates on its financial position, it has not been possible to raise sufficient equity or other funding for its immediate and future working capital requirements.
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"As a consequence, the directors of Fishing Republic Trading Limited, the Company's 100% owned subsidiary, having taken advice from Leonard Curtis Recovery Limited, have today [December 6] filed an application to appoint administrators to this company. The filing of the administration application triggers a moratorium preventing most creditor or other third-party action against this company or its assets. The application is likely to be heard in Court next week at which point it is expected that Leonard Curtis will be appointed as administrators.
"Steps to appoint administrators to the Company's other 100% owned subsidiary, Fishing Republic Retail Limited, are likely to occur in due course. The directors and Leonard Curtis continue to explore options for Fishing Republic plc and no decision has yet been reached on whether it will be placed into administration."
The update adds that Leonard Curtis has already received indicative offers from parties interested in acquiring some or all of the group's assets.
Growth plans had been based on snapping up smaller competitors, opening destination stores and boosting online sales.
Fishing Republic website
Images: Fishing Republic
1 comments:
Shame. It looks as if Angling Direct will have a monopoly before long which is not good for the sport nor for tackle manufacturers
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