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Unbound Group PLC on Tuesday said it had closed its formal sales process, having received no potential offers that it considered capable of obtaining shareholder and stakeholder support.
Shares in Unbound were down 29% at 1.95 pence in London on Tuesday morning.
The Lancashire, England-based company, which owns footwear retailer Hotter Shoes, announced the initiation of a strategic review and formal sales process in May. This was to consider what possibilities were available to maximise value for the shareholders and stakeholders, including a potential sale of the company. However, Unbound said there are no discussions ongoing with potential offerers.
The company said that Interpath Advisory, a London-based business management consultancy and Unbound’s joint financial adviser, continues to run the strategic review process for Unbound’s main operating subsidiary. Unbound noted that these offers could potentially receive little or no recovery value for its existing shareholders.
Unbound said it was considering the feasibility of an equity fundraise, of between £1.5 and £2.0 million, to support the implementation of its formal restructuring plan.
Unbound said this implementation ‘would be subject to the consent of the company’s shareholders and wider stakeholders before ultimately requiring the sanctioning of the UK Courts.’
Unbound said its revenues continued to be impacted by liquidity constraints. Its earnings before interest, tax, depreciation, and amortisation were around £1.1 million in April and May combined, with an Ebitda margin of 14% compared with 9.0% the previous year. It said this followed seasonal losses in February and March. Unbound also noted that its profitability in recent months was in line with expectations.
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