Smiggle has warned that its Australian parent company Just Group could pull the plug on funding for its UK business if economic conditions deteriorate.
The children’s stationery specialist admitted that it “continues to rely on the ongoing financial support” of Just Group and cautioned that its owner had “reserved the right to review the provision of this financial support”.
Smiggle blamed its owner’s stance on the “uncertain and volatile” macroeconomic environment in the UK market. It said that “ongoing Brexit uncertainty has continued to impact the entire UK economy and consumer confidence”.
Despite the challenging backdrop, Smiggle insisted that Just Group’s “current intentions” were to provide funding “to enable it to meet its liabilities” for at least the next 12 months.
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