Pawnbroker Albemarle & Bond’s share price crashed yesterday when it called off a sale process which was seen as crucial to its survival.
Embattled Albemarle & Bond revealed yesterday that despite receiving a number of proposals being, none were deemed to represent “a fair value” for the pawnbroker therefore it has terminated the sale process.
The news sent its share price plunging to end the day at a record low of 8p.
However, Albemarle & Bond has negotiated an extension to its covenant testing from February 3 to March 31 while it explores “alternative options”.
It said: “Whilst alternative options continue to be explored, the board of Albemarle now believes that, depending on the final outcome, there may be limited value attributable to the ordinary shares.”
Turnaround expert Jon Moulton had been named as an interested party but walked away from the process before Christmas. Rival pawnbroker H&T was also tipped as a likely buyer but said that it was more focused on smaller and profitable acquisition opportunities.
US pawnbroker and Albemarle & Bond’s largest shareholder EZCorp, which refused to back a rights issue last year, was also tipped as a suitor but it is understood that it is concentrating on growing in its home market.