Buyout near for Pentos arm
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.PENTOS is on the verge of selling its office furniture business to a management buy-out team headed by Brian Matthews, a main board director and chief executive of the subsidiary. The cash proceeds may help to stave off an embarrassing second rights issue in a year for the group.
Mr Matthews, who is being backed by institutional investors, is believed to have offered around pounds 15m for the business, close to book value.
Pentos, which announced a pounds 36m pre-tax loss for the half year to 2 July last Monday, has been trying to sell the business for five years. A sale will enable the group to concentrate on its core businesses of the Dillons book stores, Ryman stationers and the Athena poster shops. Sources close to the company say the deal will be announced shortly.
The office furniture business made around pounds 750,000 pre-tax profit in the first half of the year, so a sale will have a negative short-term effect on Pentos's earnings.
Pentos shares fell to 9p immediately after the company's half-year results were announced on Tuesday, although they made up ground during the week to close at 16.5p on Friday.
Bill McGrath, the group's chief executive who took over in January after the removal of Terry Maher, the group's founder, said that the results 'should mark a low point in Pentos's fortunes'.
He added that considerable progress had been made in refocusing the group since it received the proceeds of a pounds 45m rescue rights issue in May. The pounds 36m loss included exceptional costs of pounds 10.5m.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments