The beleaguered furniture retailer said in a statement that it had received an approach to acquire the entire share capital of its trading subsidiary and has begun due diligence with this unnamed party.
ScS’s said that the extent of working capital required would result in “only negligible value being attributed to the shares in ScS”. This has resulted in the retailer’s decision today to suspend trading on its shares.
The retailer has been hit by difficult trading conditions and last week hired Ernst & Young to advise it on a restructure to raise cash for its future. ScS has also been hit severely by the withdrawal of credit insurance to its suppliers.