Liverpool-based investor the Austin family has entered into fresh talks with its lenders as it continues to wind down the business.
The family, the former owner of budget clothing chain Ethel Austin, first announced plans to sell Ethel Austin Properties last year on the realisation that it would not be able to make enough money to pay back its lenders – Royal Bank of Scotland and Lloyds Banking Group.
The latest extension on its circa £65m of debt expired at the end of 2012.
The group, which filed its accounts for the year ended 31 March 2012 at Companies House this week, said: “The amended loan agreement envisaged that the property portfolio would be completely disposed of by the end of June 2013 and the directors anticipate further discussions with the group’s bankers regarding the status of the financing with effect from 1 January 2013.”
However, the directors added that as they expected the need for the cash to be relatively short in duration because of the wind-up, they did not regard the expiry of the debt as a major concern.
In the 12 months since it announced plans to close down the business, Ethel Austin Properties has sold £17.7m of properties and reduced its debt from £90.6m to £65.3m.
It believes the sale of the remainder of its portfolio would raise around £34m.
