The future of Pittards, the London-listed manufacturer of specialty-leather goods for retailers, hangs in the balance as Ernst & Young LLP is expected to step in as administrators. This decision comes amidst the company’s ongoing financial instability and mounting pressure from creditors. Despite the commencement of a sales process, the appointment of administrators appears necessary.
In a statement released on Tuesday, the board expressed that their primary motive for taking this action is to safeguard the interests of their creditors. The turbulent situation has led to the suspension of trading in Pittards’ shares due to the delay in the release of their 2022 accounts.
Earlier in July, Pittards had revealed its plans to raise funds through management share subscriptions and a shareholder open offer, aiming to secure up to £1.85 million. This injection of capital was crucial for the company’s continued operations, with a minimum requirement of £1.16 million. Failing to reach this target would likely result in the company being placed into administration, leaving shareholders with little to no financial recuperation.
However, on July 27, Pittards cancelled its planned fundraise as the necessary conditions for its execution had not been met. The company is now exploring all possible options, including the potential sale of the business.
