Unbound Group’s shares experienced a significant decline on Wednesday, following the company’s warning that it may face administration if its current options prove unsuccessful for both the group and its shareholders.
At 1125 GMT, shares registered a 40% drop, equivalent to 0.50 pence, standing at a value of 0.75 pence.
A London-listed company, Unbound Group, which owns the renowned Hotter Shoes brand, expressed that if it cannot find a viable solution, its ordinary shares will be suspended from trading on AIM.
The parent company, responsible for selling brands specifically targeted at the over-55 age demographic, addressed recent media speculation regarding its potential entry into administration in the absence of sufficient funding.
Having concluded its formal sales process in June, during which it failed to secure any viable offers for its shareholders, the company contemplated an equity raise of £2 million ($2.6 million).
The need for such raise arose after Unbound initiated a strategic review of its business and a formal sale process on May 19. These actions were taken following the termination of talks regarding a £10 million fund raising offer from Marwyn Investment Management LLP.
The company reassured that it will continue to provide further updates as necessary.