11th Nov 2014 09:07
LONDON (Alliance News) - Paragon Entertainment Ltd said Tuesday it will close its Quest Family Entertainment Centre at Merry Hill in six months time as low footfall left the attraction unviable.
Paragon said that a major redevelopment at the soft-play centre coincides with a break opportunity in its lease, and it has opted to exercise this break for commercial reasons. It expects to post a loss for the site of around GBP110,000 during the six-month notice period.
It has written down the value of the attractions equipment installed at the site to GBP118,000, and does not expect to make any further impairments at this stage. It said it is satisfied that the losses it will incur at the site during the six months are lower than the cost of immediate closure.
Merry Hill has seen losses at the earnings before interest, tax, depreciation and amortisation level of GBP90,000 for the year to end-October.
Shares in Paragon are trading down 29% at 1.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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