Homestyle...out of fashion and may go bust !

This company is burdened with substantial amounts of debt.

With a consumer downturn and the economy looking weak, notwithstanding debt at very worrying levels and a fragile housing market this company looks now extremely risky.

The company has various options to repay debt...a rights issue and the bed operations being sold off.

However in relation to the latter ie a sell off in relation to the bed operations it would seem the company are having difficulty raising the money as they indicated this option was likely around Spring.

Retailers are in dire straits at the moment and there is no certainty if they managed to raise money through both the options above that the furniture side would improve profitability.

If things worsen from here this company could end up like Courts...

Bust!