Wed, 09 Aug 2023 | ADMINISTRATION
A Yeovil-headquartered producer of luxury leather goods has initiated a sale process and is set to appoint administrators after abandoning fundraising efforts last month. Pittards, which is listed on the London Stock Exchange, has filed a notice of intention to appoint Ernst & Young LLP as administrators.
The company’s most recent accounts at Companies House cover the year ending December 31 2021, with its accounts for the subsequent year currently overdue. During 2021, the company reported revenue of £19.66 million, up from £15.23 million a year earlier, while it improved from an EBITDA loss of £1.16 million to EBITDA of £1.42 million in 2021. At the time, its net assets were valued at £13.07 million.
Despite this improved performance during 2021, the firm has since been hit by the wider economic downturn, affecting its financial position. Last month, the firm issued new shares as it sought to raise £1.16 million in funds to avoid administration and continue trading. However, despite the fundraising being approved by the company’s shareholders, these efforts were terminated after it only raised £300,000, which was deemed “not sufficient”.
As a result, the firm, which said it has experienced “increased creditor pressure”, is now set to appoint administrators following discussions with its advisers.
In a statement, the firm said: "On 27 July 2023 the company announced that it was considering all its strategic options for the benefit of its stakeholders which could include an orderly sale of the business and assets of the company.”
"Whilst a sale process of the business and assets of the company has been initiated, due to the group's current financial uncertainty and in light of increased creditor pressure, following discussions with its advisors the board has regrettably resolved to file a notice of intention to appoint Ernst & Young LLP as administrators to the company as soon as reasonably practicable. The board is taking this action to protect the interests of its creditors."
Pittards was founded in 1826 and has a long history of leather manufacturing and glove-making. The firm employs around 200 UK staff, along with around 1,000 in Ethiopia, and manufactures products for its Daines & Hathaway and Hill & Friends brands, as well as for third party brands.
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