6th Dec 2018 18:17
LONDON (Alliance News) - Fishing Republic PLC on Thursday said it will not be able to raise sufficient funds for its immediate and future working capital requirements.
The stock was suspended from trading on London's AIM in mid-October after some major shareholders said that they were "no longer willing to provide further short-term financial assistance" to the company.
The angling equipment retailer's shares remained suspended on Thursday.
At the end of September, the company said its pretax loss had deepened to GBP2.5 million from GBP117,544 the year prior, after revenue fell to GBP3.4 million from GBP4.1 million the year before.
Then, in mid-November, the firm said it was considering an equity raise to support working capital needs.
On Friday last week, Fishing Republic said the fundraising activity is ongoing, while the company's advisers are also in discussions with some existing shareholders to assess their support for providing short-term finance.
On Thursday, Fishing Republic said it has filed an application to appoint administrators. The filing of the administration application triggers a moratorium preventing most creditor or other third-party action against this company or its assets.
The company expects that Leonard Curtis Recovery Ltd will be appointed as administrators following Court hearing scheduled for next week.
Fishing Republic also noted that Leonard Curtis has received indicative offers from parties interested in acquiring some or all of the company's assets.