* Chairman, CEO to go with the brand
* Says difficult to raise investment
* Sees tough climate hurting current year sales
Nov 14 (Reuters) – Surf wear maker and fashion group
Hot Tuna (International) Plc said its namesake brand
would be taken private as it was finding it difficult to raise
further capital to develop the brand, and that its top
executives would step down after it.
The company, founded in the late 1960s, said it was
currently trading below expectations.
“That (the sale) would leave the Plc (public limited
company) as a cash shell unencumbered by the brand,” Executive
Chairman Francis Ball told Reuters by telephone.
Ball would leave the company along with Chief Executive
Geoff O’Connell and Brand Director Oscar Verden, the company
said in a statement on Monday.
“We will go with the brand,” Ball said.
“Hot Tuna (International) will remain as the Plc, no doubt
they will have to change their name because the new buyer will
purchase the Hot Tuna brand, assets and liabilities of the
business.”
Ball, who is yet to reach any deal with potential buyers,
said the listed company will look at acquisition opportunities
after the sale of the Hot Tuna brand.
The company bought the Hot Tuna brand from a consortium of
investors in September 2005, along with its licensed interests
around the world.
Hot Tuna saw a 65 percent rise in sales for the first four
months of its new fiscal year, but said the rate at which it was
growing was slower than expected.
Hot Tuna added sales for the current financial year would be
hurt by tough retail environment in the United Kingdom,
continental Europe and the United States.
Many British retailers are struggling, and some including
Focus DIY, Oddbins and Habitat UK have fallen into
administration, as shoppers cut back amid rising prices, subdued
wage growth and austerity measures.
The company, however, said it expected losses for the year
ended June. 30 to be below previous estimates on cost cuts.
The company had posted a pretax loss of 0.6 million pounds
for the first half ended Dec. 31, 2010.
Hot Tuna stock, which was listed on London’s AIM in 2005 at
61.5 pence, was trading at 0.07 pence at 1035 GMT, valuing the
company at about 2 million pounds.