Ailing Wickes secures pounds 18m from banks
Thursday 04 July 1996
Chairman Michael von Brentano said: "Our objective and that of our funding banks has been to ensure stability for the business. We have made it plain that the accounting issues which have been uncovered should not detract from the fact that our operating businesses are sound."
A Wickes spokesman said a working facility of pounds 18m had been made available to the company. This replaces the pounds 30m Wickes borrowed from a banking syndicate led by Barclays in February 1995, but had never fully drawn down.
The news followed lengthy recent meetings with the bankers to assess the problems. They were concerned about Wickes' future following last week's revelations of an accounting scam going back several years.
Wickes, the UK's third largest DIY retailer, has reiterated in the last week that the accounting problems have not resulted in a cash flow problem.
But the irregularities, described by the company as "deliberately misleading", have resulted in an overstating of profits over several years. Latest internal estimates indicate that 1995 profits were overstated by pounds 20m to pounds 25m.
Wickes is currently in the throes of an internal investigation to discover the scale of the problem and its perpetrators. The thrust of the investigation, being carried out by accountants Price Waterhouse and law firm Linklaters & Paines, is believed to centre on the relationship between Wickes and its suppliers. Initial reports are expected next week.
Meanwhile the company's shares remain suspended at 69p, having almost halved when news of the irregularities broke.
Henry Sweetbaum resigned the next day as the pounds 1m-a-year chairman and chief executive. Two senior managers have also been suspended pending the outcome of the inquiry which will interview Wickes' employees, including Mr Sweetbaum.
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
iJobs Money & Business
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...