(Alliance News) - Itsarm PLC on Monday said it is proposing compulsory liquidation, after over 60% of shareholders on May 26 voted in favour of voluntary liquidation.
Itsarm shares fell 40% to 0.25 pence each on Monday morning in London.
Itsarm has been a cash shell since March. At the time, it sold its only operating subsidiary In The Style Fashion Ltd for GBP1.2 million. In the Style was a Manchester-based digital fashion brand and was sold to Baaj Capital, a UK-based private family office.
The company said that the "creditors of the company would suffer detriment if the company was not placed into a formal insolvency procedure immediately."
It added that it aims to make a petition to the High Court that Itsarm will be wound up. The company will issue an update "in due course" in regard to a hearing.
Back in May, 62% of voting shareholders voted in favour of voluntary liquidation, which was lower than an undefined required majority for the resolution to pass.
In the company's last posted results for the six months to September 30, Itsarm had reported a pretax loss of GBP3.1 million, swung from a profit of GBP890,000 a year prior. Revenue was down 11% to GBP26.6 million from GBP29.8 million. Net cash at September 30 fell 61% year-on-year to GBP3.9 million from GBP9.9 million.
By Tom Budszus, Alliance News reporter
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