Discussions to sell Thailand subsidiary to overseas buyer break down.
The UKLA has suspended trading of Abbeycrest’s shares on the main market of the London Stock Exchange with immediate effect pending clarification of the group’s financial position.
The move was requested by the board of Abbeycrest, which has said that a further announcement “will be made in due course”.
The suspension follows failed negotiations by the group, which owns Brown & Newirth, to sell its manufacturing arm in Thailand.
Abbeycrest has been in discussions this month to sell Abbeycrest Thailand Ltd to an overseas buyer but discussions were not moving swiftly enough.
A statement from Abbeycrest said: “It is now clear to the board that there is no prospect of completing a sale of ATL within the time constraints imposed by Abbeycrest’s funding position.”
On January 18 the board of Abbbeycrest announced that it was pursuing all options open to it to claw back working capital, which included the disposal of some of the group’s assets, such as Abbeycrest Thailand.