Fishing Republic on the hook as it tries to land extra finance
Angling retailer Fishing Republic warned today its future is uncertain as it works to raise extra finance.
The Aim-listed business said there was “material uncertainty regarding the group’s financial position” and said “the group continues to trade only with the short-term support of key creditors”.
Shares in the group were suspended on 16 October after the retailer announced that certain major shareholders were no longer prepared to provide short-term financial support for the business.
On 17 October, the company said incoming chief executive Daniel Quinn had decided not to take up his role.
Former JD Sports and Tesco executive Quinn, is an ally of former Tesco boss Sir Terry Leahy – who holds a 9.3 per cent stake in the business. Leahy is reportedly one of the major creditors that decided to stop putting money into the business.
Fishing Republic said today it is seeking to raise finance to fund immediate and future working capital needs.
It said failure to raise further finance would lead to “a significant doubt as to the group’s ability to continue to trade as a going concern”.
It said it was working with its professional advisers, including broker Northland Capital Partners, to examine a number of options for the future of the business.