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(Alliance News) - Unbound Group PLC asked for its shares to be suspended from trading in London on Monday, as it plans to put its main operating subsidiary into administration, under heavy debt.
Lancashire, England-based Unbound owns footwear retailer Hotter Shoes. The board said it has talked to "a number of interested parties" about buying the trade and assets of operating subsidiary Beaconsfield Footwear Ltd. At the same time, it has explored options to conduct an equity fundraise, or for one of its shareholders to buy its bank debt.
However, Unbound said on Monday, "it is now clear to the board that it is no longer appropriate to progress these parallel discussions further".
The directors of the operating subsidiary plan to appoint Will Wright and Rick Harrison of Interpath Advisory Ltd as administrators.
The administrators will pursue a sale of the operating business, but "any such transaction would result in no value for the company's existing shareholders", Unbound said.
Unbound noted that the top group isn't a trading company and has no operating revenue. It has "minimal" cash and "known creditors" of about GBP900,000. It said it has some investments that are likely worth more than that debt, but it is "likely to take some time to realise these assets".
"In light of the above developments, there is uncertainty as to whether the company is able to pay its debts as they fall due," Unbound said.
The company is set to hold its annual general meeting on July 31. It said it is "highly unlikely" it will publish its annual results by the AIM deadline of August 5, so its shares would have been suspended from trading in any case on August 7.
Unbound shares were last quoted at 0.74 pence, down 97% over the past 12 months and giving a market capitalisation of just GBP488,670.
Unbound was spun off from Electra Private Equity PLC and started trading as a separate London listing early in 2022 at a price above 60p per share.
The remainder of Electra, primarily made up of restaurant chain TGI Fridays, became Hostmore PLC and remains listed in London.
By Tom Waite, Alliance News editor
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