Legion Group could face administration if sale fails
29 Jul 2010, Kevin Reed, AccountancyAge
http://www.accountancyage.com/aa/news/1808394/legion-group-administration-sale-fails
Legion Group's board is in discussions to sell the business, in an attempt to avoid administration.
The security services provider's shares were suspended yesterday due to it facing "significant" working capital restraints. Legion has been in discussions with HM Revenue & Customs over its outstanding PAYE and VAT liabilities, but it would have insufficient funds to meet these liabilities should they need to be settled in full in the short-term.
Should a sale attempt be unsuccessful, administration "may be a possible outcome".
"The board remain committed to seeking a viable solution and will make further announcements as appropriate," it said in a statement to the Stock Exchange.
Its working capital constraints were slightly eased when it agreed an invoice discounting facility with Lloyds TSB on 14 July.
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Visitor comments
KEPT IN THE DARK (2)
As employees of the company we have been treated disgracefully. There has still been no official managerial statement given to staff. It is of no surprise that the company is in such a bad state the CEO has been toying with it, for months, as though it is his own personal train set and wants to be Driver, Signalman and Station Manager all at once.
Posted by: Extremely Dissapointed Employee , 02 Aug 2010 | 00:00
Kept in the Dark
We are Legion employees and we only found this out by chance. Will we get paid if the company goes into administration?
Posted by: WATERLOO , 29 Jul 2010 | 00:00
Saved - Hooray???
So we have had our pay! I,m still very uneasy though. Originally employed by Legion we were assured that the sale of the business to Sector Guard was a "good thing",and now the sale to OCS is also a "good thing".I will take a hell of a lot convincing that the past neglect will be reversed.
Posted by: A thoroughly disillusioned employee , 10 Aug 2010 | 00:00
sale
we wereassured the slae to sectorguard was good now we have ocs may be better in the long run but we will see. The CEO and directors show leave and have nothing to do with the new company after all there negligence caused this.
Posted by: dave , 25 Aug 2010 | 00:00