(Sharecast News) - Door and window fitting company Safestyle said on Friday that its directors would likely be required to place the group into liquidation.
Safestyle said it would be placed into liquidation in "due course" after its subsidiaries were placed under administration and it ceased to control and conduct substantially all of its business activities.
Earlier this week, Safestyle administrators confirmed they had made roughly 680 of its workforce redundant after the company came off course due to a series of pressures, including runaway inflation and poor consumer confidence. Unseasonably warm weather in September also hurt demand.
Safestyle said: "Upon the appointment of the administrators, Safestyle ceased to control and/or conduct substantially all of its business activities and assets and, as a consequence, Safestyle is now regarded as an AIM Rule 15 cash shell.
"In light of such developments, the directors are now taking legal advice and are likely to be required to place Safestyle into liquidation in due course."
Safestyle said it was required to make an acquisition that constitutes a reverse takeover or seek to become an investing company within six months, failing which its shares will remain suspended.
"Given the liquidation process which is now expected to commence, Safestyle is not currently pursuing such a transaction and it is therefore anticipated that once liquidators have been appointed, the admission to trading on AIM of the company's ordinary shares will be cancelled," said Safestyle.
Reporting by Iain Gilbert at Sharecast.com
