Published: May 19, 2023 at 2:46 a.m. ET
By Anthony O. Goriainoff
Unbound Group said Friday that the board continued to seek additional funding to complete the company’s restructuring, and that it was mulling a full sale of the company, among other options.
The parent company of a group selling brands for the over-55 age demographic said that, although the board anticipated it will…
By Anthony O. Goriainoff
Unbound Group said Friday that the board continued to seek additional funding to complete the company’s restructuring, and that it was mulling a full sale of the company, among other options.
The parent company of a group selling brands for the over-55 age demographic said that, although the board anticipated it will be able to make a scheduled bank repayment on July 31, a temporary working capital shortfall could arise in September and October. This would be due to the planned build-up of inventory ahead of the launch of autumn, winter 2024.
The company said that this anticipated shortfall could be addressed via working capital management, as well as other measures. Still these measures could damage the company’s longer-term growth prospects, it said.
The board also said that it is likely the company will require further covenant waivers or deferrals in the short-term, and that it will continue its dialogue with banking partners.
Aside from a full sale of the company, the board is considering other options such as raising additional funding from a specialist debt provider or strategic investor, from the accelerated sale of its trade assets or of the shares in its main operating subsidiary.
The company said that under AIM’s takeover code it was now considered to be in an “offer period” so as to allow conversations with interested parties to take place.
Write to Anthony O. Goriainoff at [email protected]