Giant tackle chain on brink of sinking
Fishing Republic Emergency funding sought 14 superstores and 100 jobs
TACKLE shop chain Fishing Republic is seeking emergency funding to stay afloat.
The company, one of only two tackle retail PLCs, has warned that if it fails to raise additional funding, it could put an end to the group’s ability to trade, putting over 100 jobs in jeopardy.
The company’s shares were suspended from trading on the London Stock Exchange AIM market in October after certain major shareholders announced that they were no longer prepared to provide financial assistance to the group.
Since then, it has been working with its advisors to assess a number of options for the future.
In an update released to the London Stock Exchange, Fishing Republic said: “The company is currently seeking to raise equity finance to fund its immediate and future working capital requirements.
“If this fails to raise sufficient equity finance, and no other funding becomes available, there will be a significant doubt as to the group’s ability to continue to trade.”
It added that the group continues to trade only with the short-term support of key creditors. A further announcement is expected before the end of the month.
Daniel Quinn was due to start his role as the new chief executive on October 17, but said he would now postpone joining the company, leaving its current boss and former executive chairman James Newman to hold the fort.
Quinn, who has previously worked at JD Sports and Tesco, was approached by former Tesco boss Sir Terry Leahy, who owns a 9.3 per cent stake in Fishing Republic, in an attempt to turn their fortunes around.
The retailer posted a pre-tax loss of £2.5 million in September, up from a £117,544 loss a year earlier.
The company floated on the AIM stock exchange in
2015, raising millions to help carry out its expansion plans. However, turnaround plans were required during 2017 to tackle “a significant deterioration in trading.”
Reporting its interim results
Happier times for Fishing Republic at the London Stock Exchange. They have now hit major funding problems.