Albemarle & Bond has confirmed that, despite a number of proposals being put forward, it will abandon its attempts to sell the business.
In December 2013 the pawnbroker announced that it was in the best interests of the company’s shareholders to seek to sell the business by means of a City Code formal sale process, with the possibility of an offer being made for the company.
In a statement released the Albemarle & Bond board confirmed none of the proposals put forward were "deemed to represent a fair value for the company".
As a result, the board has decided to terminate the formal sale process of Albemarle & Bond with immediate effect.
In light of this and as a result of ongoing discussions, the company’s lenders have agreed to extend the covenant deferral for a period up to March 31 while the board continues to explore alternative options to maximise value for all stakeholders.
The company previously had its covenants deferred in October to the end of February with the aim of giving the business more time to turn its fortunes around.
It also announced in November that it had been selling off gold stock and closing non profit-making stores and its pop-up gold bars in a bid to raise capital.
Albemarle & Bond also warned shareholders that its shares now hold little value, stating: "Whilst alternative options continue to be explored, the board of Albemarle now believes that, depending on the final outcome, there may be limited value attributable to the ordinary shares. A further announcement will be made in due course as appropriate."
It is understood that Albemarle & Bond shares dropped 58% to 8p following the announcement, valuing it at £4.4 million. In mid 2011 the company had been valued at £224 million.
In mid-2011 the company was valued at £224m.