10 Dec 2019 18:08
10 December 2019
Koovs plc
("Koovs" or the "Company")
Appointment of Administrators, Agreed Sale to SGIK 3 Investments Limited
Geoff Rowley and Jason Baker, partners at specialist business advisory firm FRP Advisory, were today appointed as Joint Administrators to AIM-listed fashion retailer Koovs plc.
Koovs plc entered into administration after Future Lifestyle Fashion Limited (FLFL), a large Indian retailer, was unable to deliver on a promised £6.5m investment in to the business, resulting in unsustainable cashflow pressures.
A competitive sale process has been conducted over the past month in an effort to continue the business as a going concern, but no viable offers were received.
Following the appointment, the business and assets of Koovs plc were immediately sold to SGIK 3 Investments Limited, a corporate entity wholly owned by Waheed Alli.
Geoff Rowley, partner at FRP Advisory, said: "The offer from SGIK 3 Investments Limited to purchase the underlying business of Koovs in the UK and in India was the best one we received from a creditors' perspective.
"There is a legal claim against FLFL which will be left with the administrators to try and recover value. This could potentially see a return for creditors, including shareholders, and we will provide an update in due course."
Notes to editors
Media contacts (on behalf of FRP Advisory LLP)
Patrick Tooher
Patrick.Tooher@citypress.co.uk
T : +44 (0)161 235 0341
M: +44 (0)7831 314671
Rory Fletcher
Rory.Fletcher@citypress.co.uk
T: +44 (0)131 516 5654
M: +44 (0)7976 351552
About FRP
http://www.frpadvisory.com
FRP provides a professional and considered approach to problem solving. With 51 partners and 350 staff operating from 19 offices across England and Scotland, FRP is one of the UK's largest independent business advisory firms specialising in corporate restructuring, corporate finance, forensic services, pensions advisory and debt advisory. It has a strong reputation and track record for creating, preserving, and recovering value across a range of complex situations. Its advisers work at board level, with investors, lenders, government and regulatory bodies, plus other professionals and individuals requiring professional support. FRP provides a wide range of services, as well as specialist industry experience to enable the delivery of sector specific solutions.