Pentos dealing halted
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Shares in Pentos, the retail group that owns Dillons bookstores and the stationers Rymans, were suspended yesterday morning as the financial crisis at the group threatened to put the company out of business before the end of today. The shares dived before trading was halted.
Pentos's future hangs in the balance as bankers and venture capitalists meet today to decide whether to pump in £20m of new funds to keep the company going. Without the money the company will collapse into liquidation.
In a statement, Pentos said it was in discussions with its bankers and other potential investors about a refinancing package to save the company.
The company said: "In view of the comments and rumours in the weekend press, the company has requested dealings in the company's shares on the London Stock Exchange be temporarily suspended with immediate effect."
The company said a further announcement would be made as soon as practicable.
The crisis comes as two banks, Barclays and Midland, have warned they are considering not giving it the extra finance. The banks have already given the company a £55m facility, repayable on demand, which expires today. They have said they would be prepared to extend the existing facility, but any extra funding will need to come from elsewhere. A Pentos spokesman said:"The banks have engaged in extraordinary brinkmanship, putting the company on the rack when they have known for a long time now that 28 February was the crunch date."
The shares had fallen 3.5p to 4.5p by mid-morning, before they were suspended.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments