Albemarle terminates plan to sell business

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Pawnbroker says offers made did not meet the value of the company.

Albemarle & Bond has today confirmed that, despite a number of proposals being put forward, it will abandon its attempts to sell the business.

In December 2013 the pawnbroker announced that it was in the best interests of the company’s shareholders to seek to sell the business by means of a City Code formal sale process, with the possibility of an offer being made for the company.

In a statement released today, the Albemarle & Bond board has confirmed none of the proposals put forward were "deemed to represent a fair value for the company".

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As a result, the board has decided to terminate the formal sale process of Albemarle & Bond with immediate effect.

In light of this and as a result of ongoing discussions, the company’s lenders have agreed to extend the covenant deferral for a period up to March 31 2014 whilst the board continues to explore alternative options to maximise value for all stakeholders. The company previously had its covenants deferred in October 2013 to the end of February 2014 with the aim of giving the business more time to turn around its fortunes.

It also announced in November 2013 that it had been selling off gold stock and closing non profit-making stores and its pop-up gold bars in a bid to raise capital.

Albemarle & Bond also warned shareholders that its shares now hold little value, stating: "Whilst alternative options continue to be explored, the board of Albemarle now believes that, depending on the final outcome, there may be limited value attributable to the ordinary shares. A further announcement will be made in due course as appropriate."

It is understood that Albemarle & Bond shares dropped by 58% to 8p following today’s announcement, valuing it at £4.4m. In mid-2011 the company was valued at £224m.

 

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