Antler reveals loss and bank covenant breach
LUGGAGE brand Antler breached its banking covenants before being put up for sale last year, it emerged today.
Newly-filed accounts for 2008 also reveal that the Bury company plunged into the the red with a loss before tax of £18.4m on sales of £39.8m, down 3.8%.
The loss came after a £17.3m goodwill impairment charge. Operating profits before this were £3.2m, down from £5.2m in 2007, reflecting a slump in sales in the fourth quarter of 2008 caused by the financial crisis.
The Bury company, owned by Barclays Private Equity, is now “re-reviewing” its options after a sale to another buyout firm, LDC, stalled two weeks ago.
Antler has debts of more than £30m of which £14.4m is owed to Bank of Scotland, while unsecured loan notes of £16.8m are owned to BPE.
The accounts, which were filed on March 29, reveal that Bank of Scotland has not renewed the company’s facility after the breach in its covenants in 2008, but “will continue to support the group whilst it reviews its options for the business.”
The company was put up for sale last September, and despite a healthy level of interest a deal could not be concluded.
Regarding the future the company says: “The directors have concluded in conjunction with its advisors that the group should re-review its options… The options for refinancing could include (but are not limited to) restructuring the existing bank facilities, a recapitalisation by the group’s current private equity backer, Barclays Private Equity, a possible refinancing with a third party or the sale of the business and assets of the group.”
It emerged this week that chief executive Kay Twine will be leaving the business later this month to join Manchester-based Americana International as UK head of its Bench brand.
The accounts reveal that Antler Holdings had pension scheme liabilities of £8.8m at the year ended December 31, down form £10.3m the previous year.
The company, which employs more than 300 people, has cut costs and reduced its bank borrowings from £14.4m in December 2008 to £11.6m and aims to pay off a further £1.4m this month.
