Wallgate shares suspended

SHARES in the Bolton retail group Wallgate have been suspended while it “clarifies its financial position”.

The business is struggling to raise more than £1m to continue trading beyond Friday. Last week shareholders approved resolutions at a general meeting relating to the new issue of shares.

The board said it was continuing to discuss a placing with a number of potential investors and is also talking to creditors about freezing its debts.

Last month the group, which sells electrical goods and provides outsourced services to retailers, said finance director Simon Fine and chief executive Howard Strowman would forego their October wages to help the company. It has already been forced to put its discount retail chain Hitchens into administration.

If it manages to raise cash by the end of the week Wallgate plans to pay creditors and fund stock. The decision to put Hitchens into administration has left the business with its online trading divisions, Hot Deals and Best Price Trading, and two electrical shops in Nottingham and Runcorn.