Home shopping group Findel may launch a rights issue to put its finances on a more secure footing.

The retailer and its lenders have been discussing for some time the possibility of shifting some debt facilities “onto a longer term and committed basis”.

Findel said: “As these discussions have progressed it has become apparent that revisions to the terms of the group’s revolving credit facilities will be required by the lenders.”

An equity issue is being considered by the group alongside other financing changes.

Findel said that performance in the year to April 3 was “at the lower end of expectations” and home shopping sales fell 4 per cent.

Brewin Dolphin analyst John Dickinson put his hold recommendation under review and said: “The timing of this announcement looks as though the company is coming from a position of weakness.”