Future of historic leather firm is hanging in the balance

The future of a historic Somerset firm is looking increasingly uncertain after a fundraising failed to reach the required target.

Leather manufacturer Pittards was hoping to raise £1m to stave of the threat of administration.

But the sale of the shares only managed to raise £329,049 and the scheme has now been cancelled.

The move has left the future of the business hanging in the balance and the directors of the Yeovil business are now considering their next move.

The various options open to the company include entering into administration or a sale of the 200-year-old business.

A statement on the situation has been released to the Stock Market.

It read: “Unfortunately, all the conditions of the fundraising have not been satisfied and the board has therefore taken the decision to terminate the fundraising.

“The company received valid applications in the open offer for a total of 5,101,215 new ordinary shares, conditionally raising £204,049 for the company.

“Therefore, the company conditionally raised in aggregate £329,049 pursuant to the management subscriptions and the open offer. These funds together with the funds available from the trade investor are not sufficient to meet the condition for a minimum amount of additional capital to be raised by the company.

“Following its termination, all monies subscribed by shareholders in the open offer will be returned to them within ten business days.

“With the support of its bankers who have extended existing facilities to 31 August 2023, the company will continue to consider all its strategic options for the benefit of its stakeholders which may include an orderly sale of the business and assets of the company.”

Pittard’s was founded in 1826 and is part of the rich history of leather manufacturing and glove-making in the Yeovil and Somerset area.

The company employs around 200 people in the South West and 1,000 in Ethiopia.

The company manufactures leather products for third parties as well as its owned Daines & Hathaway and Hill & Friends brands.

Last month the company agreed terms on a restructure of its £10m debt facilities.

However, the loan agreement is dependent on the firm being able to carry out a successful equity raise.

Trading in the company’s shares is currently suspended, pending publication of the final results for the year ended 31 December 2022 which in light of recent events have be further delayed.