The Unbound board is currently reviewing the feasibility of an equity fundraise to support its restructuring plan. This follows its having terminated the formal sale process for the business in the light of there having been no offers made which would have satisfied the company’s existing shareholders. It is, however, continuing to work with Interpath in respect of the Hotter footwear business.
In a statement, Unbound said that its revenues continue to be impacted by liquidity constraints and that it remains reliant on the waiver of certain covenants under existing borrowing facilities. The profitability of the business in recent months had been in line with the board’s expectations, due to the implementation of cost reduction measures.
The board says that there has been some positive feedback from some of its major shareholders in respect of an equity fundraise. It is looking to secure between £1.5m and £2m. Singer Capital Markets is the company’s financial adviser, nominated adviser and broker.
The Unboard cautioned that there was no certainty that an equity raise could be achieved.