RNS Number:8897A
Lambert Howarth Group PLC
26 July 2007
26 July 2007
Fashion Group plc ("the Company")
Potential Fundraising update and Appointment of Administrator to Orient
Sourcing Services Limited ("the Natural World business")
Potential Fundraising
Further to the announcement made on 2 July 2007, the Company has decided that,
owing to unforeseen circumstances, it can no longer proceed with its proposed
equity fundraising. The Company is actively pursuing alternative courses of
action.
As a consequence of the cancellation of the proposed fundraising, the Company
is not in a position to publish its annual report and accounts for the year
ended 31 December 2006 and its shares will remain suspended from listing.
In spite of the ongoing financial restructuring, the new management team has
been highly successful in winning new business for the brands division, and the
Company continues to trade normally.
Natural World business
The Company's Homeware Division comprises the UK homewares business (Orient
Sourcing Services Limited, trading as Natural World) and the Spanish homewares
business (trading as Natural Selection).
The Natural World business has been loss-making for a number of years and the
Board, in consultation with its lending bank, has concluded that it was not in
the Group's interests to invest further additional capital in the business,
given the requirement to conserve cash and reduce losses within the Group. In
the interests of the creditors of Natural World administrators have been
appointed.
The Group is retaining Natural Selection, its Spanish-based homewares business,
although the Group is actively reviewing options for that business, including a
potential sale.
A further announcement will be made when appropriate.
Enquiries:
Fred Vinton 020 7258 9917
Pamela Harper 020 7258 9917
Paul Owens 020 7258 9917
This information is provided by RNS
The company news service from the London Stock Exchange
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