(Alliance News) - Koovs PLC said Tuesday it has been placed into administration following the failure of its largest shareholder, Future Lifestyle Fashions Ltd, to invest more money into the company.
Koovs said Future Lifestyle Fashions, part of India's largest retail group Future Group, failed to fulfil a contractual commitment to invest a further GBP6.5 million into the company.
The online retailer also said it failed to secure alternative sources of funding.
"The board expects that the business and assets of Koovs will be purchased from the administrator by a company connected to the company's largest secured creditor, Waheed Alli, ensuring the continuation of the operating business," the company said.
As a result, Koovs shares have been suspended from trading and Strand Hanson Ltd has resigned as the company's nominated adviser with immediate effect.
"If a replacement nominated adviser is not appointed within one month, the admission of the company's securities will be cancelled on AIM. The company has no current intention of appointing a replacement nominated adviser," Koovs added.
Koovs shares last traded on AIM in London at 3.24 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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