Bank refuses to back Cains
cains
THE future of Cains is today in grave doubt after the Liverpool brewer’s bankers, Bank of Scotland, chose not to back the plans to secure its future.
Cains requested that its shares, which are listed on the Alternative Investment market, were suspended, which happened at 2pm today.
In its interims results announcement on Monday, when it announced six-month losses of £4.6m, Cains announced that it was in advanced negotiations with the Bank of Scotland regarding the renewal of its banking facilities.
The directors believed they would be able to reach agreement with its bankers regarding appropriate levels of funding, but noted that there was a material uncertainty as the group's ability to continue as a going concern.
The company faces a winding-up order on August 12 because of an unpaid tax bill.
Details of that tax bill emerged late last week and at the time, Chief executive Sudarghara Dusanj said he was “concerned” following talks over the repayment of that tax bill and financial losses during the last six months.
Last week, he said the Toxteth brewery, which employs about 1,000 people, had been in contact with HM Revenue and Customs about the bill.
He said: “It’s quite a difficult situation. It is quite an important stage of the business and quite an important hurdle.
“There has been an agreement with the HMRC.”
When asked if he was concerned about jobs at the company, Mr Dusanj said: “We are concerned.
"In a statement Roy Morris, chairman of Cains Beer Company, said last week: “The results show a loss before tax for the six months of £4.5m, compared to a loss of £2.7m for the 14-month period ended October 28 2007.”
Mr Morris said in the statement that the company can “withstand the present downturn”. The bank's decision today places that future in serious doubt.
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