Stanley Gibbons cancels interiors sale to Millicent

Stanley Gibbons Group updated the market on the sale of “certain assets and liabilities” of its interiors division on Friday, confirming that it had become apparent that suitor Millicent was unable to access the funds it had earmarked for payment of the consideration due on completion.

The AIM-traded firm had reached agreement with Millicent in May, and had since extended the deadline for completion to allow Millicent time to secure funding for the transaction.

“In the meantime, as a result of the formal sales process announced on 12 June, the company believes that there are other parties interested in acquiring the group's interiors division,” the board said in its statement.

As a result, the company had decided not to proceed with the sale to Millicent and had exercised “certain termination rights” pursuant to the agreement.

“A termination fee is now payable to the company by Millicent under the terms of the agreement, and the company will now seek to recover this by enforcing certain collateral that was provided to the company.”

As it had announced on 9 May, the Stanley Gibbons Group currently traded at a “broadly cash neutral” basis and - in the absence of the proceeds of the sale - the board said it would continue to manage its cash flow “carefully”.