LONDON (Alliance News) - AIM-listed Marwyn Management Partners PLC on Wednesday said there will be redundancies at Le Chameau SAS, its French high-end wellington boot company, following a consultation with employees that will lead to a "consolidation" of the business's manufacturing operations.
"The board believes that the resulting efficiency benefits will better enable Le Chameau to deliver long term value for shareholders," Marwyn Management Partners said in a statement.
Production will continue at Le Chameau's factory in Morocco, which accounted for more than 85% of boot production in 2015. Investment in the factory, which has been operational since 1949, has begun to increase capacity and manage "additional production requirements" resulting from "anticipated future demand".
Marwyn Management Partners and its Marwyn Management Partners Subsidiary Ltd have entered a new GBP4.7 million credit facility with Marwyn Value Investors LP to fund the move. Marwyn Value Investors LP is the underlying fund in which London-listed Marwyn Value Investors Ltd invests.
The facility has a two-year term, is repayable in full at maturity and will be secured through a charge over the shares and security over the bank accounts of "certain" Marwyn Management Partners group entities.
A commitment fee of 1.5% per annum must be paid on undrawn amounts under the facility. Interest is payable on amounts drawn down under the facility at 8% per annum.
Marwyn Value Investors LP owns 90% of Marwyn Management Partners.
Marwyn Management Partners' results for 2015 will be released on April 28.
Shares in Marwyn Management Partners were untraded on Wednesday, having closed at 2.38 pence Tuesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Marwyn Val. (MVI)