Luxury leather goods producer and retailer Pittards is facing a race against time to secure £1.16 million in funding by July 28th or risk going into administration. While the company has reached an agreement with an unnamed trade investor who is willing to invest up to £1 million, this offer is dependent on Pittards raising the remaining capital and securing new banking facilities.

In a straightforward announcement to the London Stock Exchange, Pittards acknowledged that failure to raise the additional funds would result in the company being unable to continue trading, leaving shareholders uncertain about the recovery of their investments.

Pittards, which is listed on the AIM market, has encountered significant challenges amid the current economic climate this year. In March, the company had planned to raise £255,000 through the sale of one million shares. Additionally, it recently secured new banking facilities worth £10.1 million, contingent on a successful equity raise.

While Pittards is primarily known as a supplier of leather materials, it also operates its own luxury leather goods brand. Approximately one year ago, the company acquired the brand and assets of Hill & Friends Limited, a contemporary bag brand co-founded by Emma Hill and Georgia Fendley.

The urgent need for additional funding underscores the difficulties faced by businesses in the luxury goods sector as they navigate the ongoing impact of the global pandemic. Pittards must act quickly to secure the necessary investment to avoid the risk of entering administration.

Useful links:
1. Pittards
2. Hill & Friends Limited