UK: Pawnbroker Abermarle & Bond continues deal search after buyer walks away
Cash-strapped pawnbroker Albemarle & Bond’s bid to secure a rescue deal has been dealt a blow after a potential buyer walked away.
Albemarle said it was still in talks with a number of other interested parties following the withdrawal of corporate turnaround firm Better Capital, whose investments include parcel delivery firm City Link and fashion business Jaeger.
The pawnbroker put itself up for sale in early December after its trading was hit by a slump in gold prices and rising competition in a sector that has more than doubled in size over the past five years.
It has been trading at a loss in recent months and is in danger of breaching financial covenants while it looks to secure its future before the end of a three-month reprieve from its lenders at the start of February.
Rival chain H&T is understood to be one of a number of trade and financial buyers that have formally lodged interest in buying Albemarle.
Albemarle, which also trades as Herbert Brown, has reduced the size of its estate to under 200 sites, having closed its pop-up gold buying stores.
It said today: “The board of Albemarle & Bond understands that Better Capital has withdrawn its interest in the company’s formal sales process. The board confirms that the formal sales process is ongoing and that it is continuing discussions with a number of interested parties.”
- 1 14 players that could solve Town's left-sided problem
- 2 Man dies after being found unresponsive in Sudbury river
- 3 'We're blown away' - Classic car show visits care home after roadworks setback
- 4 Community sadness after death of man who was found in river
- 5 Former Suffolk poultry farm site could be converted into homes
- 6 Historic former pub with permission to convert into homes set for auction
- 7 'New-look' Aldi store set to reopen in Sudbury, creating additional jobs
- 8 Bent names Town stars among his best-ever team-mates
- 9 Man left with head injury after attack in seaside town
- 10 Man allegedly four times the drink drive limit in Stowmarket
The company recently revealed that measures taken to remain within its £53.5 million borrowing limit included a clampdown on lending through its Speedloan and online arm, as well as a “programme of exceptional smelting” of gold items bought by its stores.
It has also seen a mass exodus of board directors, with five of its six non-executives recently quitting with immediate effect - leaving chairman and former chief executive Greville Nicholls as the only remaining non-executive at the pawnbroker.