Campari crashes as rescue is called off
Wednesday 26 June 1996
With little or nothing likely to be salvaged for shareholders, Wing Tai, the Hong Kong family company which owns just under 30 per cent of the company, is likely to face a loss of around pounds 8m. Paul Sanderson, chairman of Sanderson Electronics, also faces substantial losses, having bought into the company in November 1994. He controls a 23.4 per cent stake. The shares were suspended yesterday at 28p.
Campari chalked up losses of pounds 8.61m in 1993 and pounds 7.69m in 1994. Pelham Allen, the company doctor brought in as chairman last year, said they had been unable to obtain sufficient working capital to finance autumn and winter orders.
Shareholders' funds have fallen to pounds 4m from pounds 22m in December 1992. "Basically, pounds 8m was knocked off in each of the next two years from losses. The business needs pounds 8m-pounds 10m of shareholders' funds to support the business and we could not achieve that," Mr Allen said.
Earlier this month, Campari announced that a private UK textile company had made a proposal involving the provision of additional working capital. However, that company had now come to the conclusion that Campari's requirements were too great.
Mr Allen said they had come "very, very close" to bringing in the new backers. But he added: "Textiles is not a popular sector. We are a turnaround situation. We had stopped the losses, but had been unable to reduce the risk to get the new money in."
The group was given a stay of execution last year when shareholders, including Wing Tai and Mr Sanderson, backed a pounds 1m emergency financing package following a six-month suspension of the shares and a boardroom clear-out.
Mr Allen said discussions were now taking place with a possible buyer in Holland.
Sales of the tablet are set to fall again, say analysts
World's most lethal spider found under a bunch of bananas
I Am Bread could actually be a challenging and nuanced title
Company decides to go for simply scary after criticising other sites for 'creepy and targeted' advertising
Footage shot by a passerby shows moment an ill man was carried out of his burning home
Peter Biaksangzuala died from his injuries in hospital on Sunday
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 3 Star Wars memorabilia called a 'bit of plastic' on Antiques Roadshow by Fiona Bruce valued at £50,000
- 4 Meet Thea, Norway's 12-year-old child bride
- 5 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
Kobani: Fifteen-year-old boy taken captive with suspected jihadist 'shot in the head by militant group' fighting against Isis
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
Isis fighters 'crucify' 17-year-old boy in Syria
Oscar Pistorius sentencing: Olympic star must serve 10 years, prosecutor urges
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...