Yesterday, Adili asked for its shares to be suspended “pending clarification of the company's financial position”, leaving the company’s future insecure
By Jennifer Denby
Adili plc is the holding company of Adili.com Limited, which is an online ethical fashion retailer based in the UK.
The company trades under the Ascension brand name through its website, www.ascensiononline.com, which sells clothing and accessories from ethical brands including People Tree and Patagonia.
In a statement to the Stock Exchange, Adili said: “Unfortunately, the active discussions to secure the future of the business have now terminated without agreement having been reached.”
The retailer’s directors said: “The uncertainty of the company's financial position at this stage means that a temporary suspension is considered to be appropriate.” However, they said they were continuing to explore options for raising cash.
Adili’s financial troubles were brought to investors’ attention in a trading update in December and again in January. The retailer reported revenues of 299,000 pounds and recorded a loss of 886,000 pounds.
The results warned that its cash would run out within 12 months unless it could raise more finance.
Adili said it was trying to raise money “without recourse to existing shareholders, but cannot rule this option out”.
Edited by Ellie Duncan