Legion Group could face administration if sale fails
Legion Group suspends shares, negotiates with HMRC and attempts to sell its business - in a bid to avoid insolvency
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.