Safestyle UK ‘likely’ to be liquidated
- The Bradford-based company revealed that liquidation is ‘likely to be necessary’
- Earlier this week it emerged that around 680 employees had lost their jobs
Safestyle UK directors are ‘likely’ to put the company into administration after the retailer was placed into administration earlier this week.
The Bradford-based company told investors that liquidation is likely to be necessary following the appointment of administrators, defining the group as ‘an AIM Rule 15 cash shell’ under city rules.
This means that Safestyle UK, once Britain’s leading doors and windows company, is now classed as an investment company with six months to make an acquisition.
However, the group is not exploring deals.
The Bradford-based company revealed in a trading update that liquidation is ‘likely to be necessary’
In a statement, the group said: ‘As an AIM Rule 15 Cash Shell, Safestyle is required to make an acquisition, or acquisitions, that constitutes a reverse takeover under AIM Rule 14, or to become an investment company under AIM Rule 8 within six months from October 30, 2023, failing which the shares will remain suspended.
‘Given the liquidation process now expected to commence, Safestyle is not currently pursuing such a transaction and it is therefore expected that once the liquidators have been appointed, the admission to trading on AIM of the Company’s ordinary shares will be withdrawn.’
Earlier this week, Safestyle revealed that around 680 employees have lost their jobs after the company went into administration.
The group has suffered a slowdown in the UK housing market, largely caused by mortgage rate increases, inflationary pressures and subdued consumer confidence.
During the summer, trading was further affected by very wet weather in July, followed by unusually warm weather in late August and early September.
In October, Safestyle warned it could breach its debt covenant if losses were greater than expected.
Before the suspension of its shares, it had plunged about 99 percent since the beginning of the year.
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