Tackle-shop chain Fishing Republic has today [December 6] filed to go into administration.
The Rotherham company, which floated on the stock market in June 2015, has 14 branches across the UK.
Warning signs over the future of the company have been evident since September when a gloomy interim results statement eventually led to the suspension of shares in the company in mid-October.
September’s interim results showed Fishing Republic’s pre-tax losses had risen to £2.5m, up from £117,544 the year before, after revenues dipped from £4.1m to £3.4m.
Last month, a company update stated there was “material uncertainty regarding the group's financial position, and the group continues to trade only with the short-term support of key creditors”.
The situation came to a head today when the company released a statement which read: “Fishing Republic announces that, further to the recent updates on its financial position, it has not been possible to raise sufficient equity or other funding for its immediate and future working capital requirements.
“As a consequence, the directors of Fishing Republic Trading Limited, the company's 100-per-cent-owned subsidiary, having taken advice from Leonard Curtis Recovery Limited, have today filed an application to appoint administrators to this company.”
A court hearing confirming the administrators is expected next week.
The statement added interested parties have already expressed a desire to acquire some or all of the group’s assets.