Stanley Gibbons Group PLC - retailer of collectable postage stamps - Notes that subsidiary Mallett Inc has been a legal dispute concerning New York leasehold property which was sub-let.
The tenant in April 2020 ceased paying the rent, which in turn meant Mallett could not pay the landlord. In August 2021 Mallett made a settlement agreement with tenant, but has not been able to negotiate a settlement with the landlord for the outstanding rental arrears and has been unable to negotiate an early termination of the lease.
As a result, Mallett will enter into a Chapter 11 process in the US, filing for bankruptcy and allowing it to promptly liquidate its assets.
"It was always our hope that we could reach a negotiated settlement with all parties in connection with the New York lease. Unfortunately, this has not been possible with regard to one of the parties concerned. Therefore, in order to protect the group's remaining assets and minimise the future liabilities the decision to place Mallett Inc in to Chapter 11 has been taken," says Chief Executive Officer Graham Shircore.
Current stock price: 2.62 pence, down 4.7%
Year-to-date change: down 22%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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