Alexon suspends shares as administration looms

Retail Week revealed yesterday that private equity firm Sun European Partners was the front runner to buy the group, while Debenhams is alo considering purchasing some of the retailer’s brands, which include Alexon, Ann Harvey, Dash, Kaliko, Eastex and Minuet.

Any deal with Sun European is likely to be done as part of a pre-pack administration, with KPMG expected to be appointed administrators.

Alexon has suffered in the depressed consumer environment, issuing a profit warning on September 5. It appointed KPMG to advise on its restructuring options earlier this month.

Alexoin said: “On 19 September 2011 the Board of Alexon announced that, whilst the Group was exploring its options to put in place a more appropriate capital structure, the Group was currently operating with limited headroom against its existing facilities and accordingly that there was a clear requirement for additional funding in the short term as it enters the seasonal peak in working capital requirements.

“Since that date, the Board of Alexon has continued to explore thoroughly all available options to address this requirement.

“However, the Board now believes that it is increasingly unlikely that a solution to the funding issues which the Group faces can be secured in the necessary timeframe.

“Accordingly, the Company has requested a suspension of the listing and trading of the Company’s ordinary shares with immediate effect, pending clarification of the company’s financial position  A further announcement will be made in due course.”