Leather manufacturing group Pittards has announced that it will not take the fundraising exercise it announced on July 11 to completion.

It had said on July 11 that it intended to raise more than £1 million to continue trading and said there was a possibility it could go into administration if the exercise were unsuccessful.

At a general meeting of shareholders on July 27, it said the conditions of this fundraising exercise had not been met and that the board had taken the decision not to go ahead with it.

In the weeks between the announcement and general meeting, Pittards managed to raise around £330,000 but it said these funds, with other funds currently available, were not sufficient to meet the condition for a minimum amount of additional capital to be raised.

The company’s bankers have extended existing facilities to August 31, 2023, and the company will now consider “all strategic options” for the benefit of its stakeholders. It warned that this may include the sale of the business and its assets.

Trading in the Pittard’s shares is suspended pending the delayed publication of the final results for the year ended December 31, 2022. In light of recent events, publication of these results will be further delayed.