Sun European to acquire Alexon in pre-pack deal
Alexon suspended its shares on the London Stock Exchange today amid reports that private equity firm Sun European will buy the struggling womenswear group out of pre-pack administration.
The group, whose brands include Kaliko, Eastex and Dash, was put up for sale earlier this month following a 9% fall in sales and the issue of its third profit warning of the year.
In a statement issued today Alexon said: "On 19 September 2011 the Board of Alexon announced that, whilst the Group was exploring its options to put in place a more appropriate capital structure, the Group was currently operating with limited headroom against its existing facilities and accordingly that there was a clear requirement for additional funding in the short term as it enters the seasonal peak in working capital requirements.
"Since that date, the Board of Alexon has continued to explore thoroughly all available options to address this requirement. However, the Board now believes that it is increasingly unlikely that a solution to the funding issues which the Group faces can be secured in the necessary timeframe.
"Accordingly, the Company has requested a suspension of the listing and trading of the Company's ordinary shares with immediate effect, pending clarification of the Company's financial position."
The group said a further announcement would be made in due course.
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