Liverpool / UK. (rgf) British Real Good Food Company PLC (RGF), specialising in Cake Decoration, provided on November 28 the following update on trading and its review of strategic and financing options.
As announced the Board had carefully reviewed its management accounts and working capital position, as well as the expected sales in November and December. It was noted that performance had been constrained by supply issues and cash constraints which are continuing and that sales in November and December were expected to be lower than previously forecast.
This led the Board to conclude that it is in the best interests of all stakeholders to explore strategic options for its remaining business JF Renshaw. The Board of JF Renshaw consequently resolved to appoint Interpath Advisory as its adviser to assist with the review of all strategic options, given a challenging environment for the Company and the related cash flow constraints, which included the sale of the shares or the business and assets of JF Renshaw as well as sourcing external funding.
Discussions with respect to a sale of JF Renshaw are continuing, however the Board has concluded that the likelihood of a solvent sale of the business and assets of JF Renshaw is very limited within a constrained timeframe. Given the impact of the current operating environment on the Group, the Group’s limited working capital position and the consequential uncertainty regarding the Group’s financial position, the Board and the JF Renshaw Board have each concluded that it is required to take the necessary steps to preserve value for creditors. The Board and the JF Renshaw Board have each therefore filed a Notice of Intention to appoint Administrators this afternoon, with a view to appointing Richard Harrison and Will Wright of Interpath Advisory, as joint administrators of the Group, within ten business days.
Should Administrators be appointed, the outcome to creditors of the Group is currently uncertain. Given the circumstances, the capital structure of the Company and options open to it, the Board believes that there will be no return to shareholders whether via a solvent sale of JF Renshaw or any procedure in an Administration. Shareholders are advised that there can be no certainty of the outcome of the strategic options review. The Board reserves the right to alter any aspect of the process or to terminate it at any time. A further announcement will be made with an update as soon as practicable.
Suspension of Trading on AIM
In light of the described uncertainty, the Board also announces that it has requested a suspension of trading in the Company’s ordinary shares on AIM with effect from 07:30 a.m. on November 29, 2023.