Pittards Share Discussion Threads

[clocktower] 30/6/2023 10:57

One thing that is more or less certain is that I doubt if the directors pension funds will be effected.

If the debt was wiped out and they wrote off all the dead stock, the company would be profitable.

Question is, what are the assets worth?

The two factories (site and buildings) - the machines, the goodwill (next to nothing),
what else is there other than the longstanding staff but I wonder if some of those have already been cut to try to make savings rather than the directors working for a basic living wage.

Past of the problem was before the current CEO took over but the Chairman has a lot to answer for imo.

[chriss911911] 30/6/2023 10:29

I can only imagine they were all sleeping, because in 2007, were told things are bad because of currency, fast forward 16 years, same excuse, same leader, consuming investor and bank money consistently over that time, with sales in terminal decline throughout.

The bank gave them more money this year, but only if shareholders put more money in, which key shareholders and board did, (50% investors /50% bank) that's a quick way to burn through £0.6m of cash. Were now told all money gone, so we are "pleased", really, pleased about what, not getting a bank renewal, not finding an investor, being late producing accounts, having a poor start to the year again, having shares suspended, or having burnt their own money and that of others so quickly?

The situation is now worse, back at the ceiling of enlarged facilities and having spent the shareholder and additional bank cash, the bank harden position further, and will not match equity injection, nor provide any more cash. If no equity injection of at least £1.5m, on or before 31.07.23 it's game over if not sooner, but then 5p (versus 55p just a few months ago) or 0p, more or less same answer, disastrous.

They should be sorry and regretful to shareholders and indeed now their staff whom they have lead to this sorry path; the blind arrogance is as overwhelming as the share price collapse. To summarise, either asleep or just blind arrogance, are the likely reasons, otherwise if not, I don't know, and doubt they do either.

[meijiman] 30/6/2023 08:42

How can the present management remain in situ? I have never come across a company where years of failure do not result in changes to give someone else a chance. Normally institutions say enough is enough and something happens. Here the Chairman and ceo protect each other to ensure the gravy train (rewards for failure)continues for ever. There is something not right here. THis is linked to appointing manifestly incompetent FDs and having a supine set of non-executives.
If anyone has any views on this situation I would be interested to hear.

[meijiman] 30/6/2023 08:40

How can the present management remain in situ? I have never come across a company where years of failure do not result in changes to give someone else a chance. Normally institutions say enough is enough and something happens. Here the Chairman and ceo protect each other to ensure the gravy train (rewards for failure)continues for ever. There is something not right here. THis is linked to appointing manifestly incompetent FDs and having a supine set of non-executives.
If anyone has any views on this situation I would be interested to hear.

[smithie6] 30/6/2023 08:17

but....

the co. has said that the shares might be worthless is the cash raise fails...

that doesn't help attract new money

The share price has fallen from ~200p to 50p area over past 10-15yrs, if ignore this last drop. Such a down trend does not attract new money.

What is your idea(s) to make the company profitable ?
If new money people can not see that it would be profitable with their investment then I can't see them investing.

Who might invest ?
An Asian company wanting the name & image ?
but not a very famous brand imo

How to make Pittards business more profitable ? (by increasing revenue or reducing costs, or a mix of both ?)

I have no ideas.
But sadly the current ND has imo shown that he can't do it. But it is difficult with high UK labour costs, high energy costs, high business rates....

[clocktower] 29/6/2023 15:20

They lack vision, as to how to solve the debt situation - £10 million is very little these days.

If they had any idea they would find people that can come up with innovative solutions to the small problem. Think £10 million will only just buy you a couple of luxury flats in London let alone two huge factories, machines, stock, and most valuable of all expert loyal staff plus goodwill and an international list of clients.

If they do raise £1.5 million they will be back in the ditch before long but of course the directors will be able to keep drawing their salaries for a bit longer and it will give the staff a few more months I guess to make provision.

I wish them well but would urge them to think outside the old fashion box and go for £10 million plus in a raise.

[clocktower] 29/6/2023 15:06

Crazy just raising £1.5 million.

They need to raise sufficient to wipe out all the debt and that appears to be around £10.1 million.

"The Company is pleased to report that it has agreed indicative terms for the restructuring of its existing debt facilities for its UK business with Lloyds Bank, for approximately £10.1 million. The principal change being the restructuring of the Company's existing overdraft facilities into a two year term loan of £7.7 million with the other facilities remaining largely unchanged. The proposed new debt facilities are conditional, inter alia, on the Company completing an equity fundraise of £1.5 million."

Of course Lloyds Banks plc are hanging in there, as they will not want to right off most of the debt, because as soon as the administrators get their foot in the door, they will bleed every penny out for themselves that they can, by whatever means they can.

I expect they have the security on the property in Yeovil and in Ethiopia. plus all the stock and equipment.Not that the stock is worth a light,if the administrators have to deal with it, as on the website they have had a sale on for months now and next to nothing seems to move.

However, PTD months ago stated it was all being revalued but the value is only what someone will pay for it in the current market.

It's clear to me (and understandable)that they are just trying to save their own skin and that of the two major shareholders, whom clearly are working hand in hand with them but either unwilling or unable to put up the funds they feel are required to save the business.

If they have not been able to drastically reduce the stock to reduce the bank debt over the past months/years, what hope have administrators of selling it?

Remember they say:

"In the meantime Company continues to operate at or around the ceiling of its bank facilities."

"Plans for the equity raise are underway and include discussions with a cornerstone trade investor. Shareholders should note there can be no certainty of the outcome of these discussions. Accordingly, in light of the Company's reducing cash position, should the Company be unable to complete the £1.5 million fundraising, the prospects for recovery of value, if any, by shareholders would be uncertain."

So who is the cornerstone trade investor - I would suggest it could be Vivobarefoot.



Who are the existing shareholders in Vivobarefoot, well the main ones are:

That's is a member of the old Clarks shoe family.

1.Stella Investments Overseas Ltd: 17.5%
2.Clarks Family: 75.5%
3.Crowdcube Investors: 7%

[bookbroker] 29/6/2023 13:11

The only real asset apart from the stock, machinery, etc is the factory in Yeovil, that would not appeal to another retailer. More like an apparel manufacturer to buy, or Mulberry of which Ashley is a shareholder, who can utilize the workforce and materials. And they still produce some of their leather goods in Somerset.

[triskelion] 29/6/2023 12:11

I only have a token holding. But I like the fact Ruffer Investment Management Limited is in there with appx 11% at least as of 12/4/23 per SharePad.

Another Frasers Group buy in possibility? But on prior form if they were even actively engaged I assume their preferred approach would be to wait in expectation of pursuing only an asset purchase from an administrator.

[tomboyb] 29/6/2023 11:32

Too much debt -

[bookbroker] 29/6/2023 11:26

Glad I bought some pairs of gloves!

[bookbroker] 29/6/2023 11:25

Went to the factory shop in Yeovil, great selection of beautiful leather gloves and bags, beautifully made and that genuine smell of quality leather. This should be bought by a fashion house like LVMH or Hermes for the standard of the product. Be a tragedy if left to go under.

[clocktower] 29/6/2023 10:18

Today's RNS has just kicked the ball down the road for another month at most.

In any case it is surprising the shares are still trading above 1p.

So few holders of any number of shares that are worth selling I guess prevents the slide to near zero.

[tomboyb] 23/6/2023 15:58

I think in these markets it is better to not have much of a business or one with extremely low costs and little or no debt-

[clocktower] 23/6/2023 15:41

Will a White Knight appear at the last moment to save the day, as the bell ticks for just another seven days until the day the bank calls time I expect.

Yesterdays interest rate rise would have only been another nail in the coffin with a debt of almost eight million.

[clocktower] 19/6/2023 12:35

I just noticed a bit of buying going on, is someone taking a risk or is there news of a deal being done that would bring the share price up towards the price they last raised?

[chriss911911] 13/6/2023 21:44

being the 13th, bit odd, just 13days trading days to go until suspension and oblivion, or perhaps, a new line in underwear or failing that a stoning

[smithie6] 08/6/2023 18:19

briefcases...
...very retro ! ;-)

& retro is very trendy, no ?

[arthur_lame_stocks] 08/6/2023 15:01

I used to keep my underwear in a briefcase, but these days I wear boxers.

[clocktower] 08/6/2023 14:36

Maybe someone that is in the city might comment rather than one that is enjoying other sunny destinations but I very much doubt it Smithie6 - unless they are over 60 maybe and even then most will be working from home I suppose.

Backpack more likely but leather few and far between as not now fashionable.

Tumi is known for it's leather goods but even they seem to have no hard briefcases, and limited soft ones.

[smithie6] 08/6/2023 14:07

briefcases

surely popular with many ppl on the trains to work in the offices of London, no ?

[clocktower] 07/6/2023 19:18

A briefcase?

Rather dated, I don’t see many of those things around nodays.

Pittards make their gloves in Ethiopia I believe, so much cheaper to produce.

So

Someone likes them today, as that’s the first small buy for a while.

[smithie6] 05/6/2023 21:20

"The tree huggers aka great unwashed dont want animal products anymore"

I'm not so sure.
I'm still a fan of leather.
but yes, I'm getting on now, many of the younger generation are vegetarians & as you say are surely not buying many leather products.

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difficult for UK products to compete on cost, for example I bought a nice leather brief case with 3 compartments for under 100€, ~£90. A similar UK made product would phps cost £180-270.