REG - Real Good Food PLC - Intent to Appoint Administrators &Share Suspension

Real Good FoodAnnouncement

28/11/2023 16:45

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RNS Number : 9574U  Real Good Food PLC  28 November 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

Real Good Food plc

("RGD", "the Company" or "the Group")

Intention to Appoint Administrators and Suspension of Trading in Shares

Real Good Food plc, (AIM: RGD), the food manufacturing business specialising
in cake decoration, provides the following update on trading and its review of
strategic and financing options.

As announced on 17 November 2023 the Board had carefully reviewed its
management accounts and working capital position, as well as the expected
sales in November and December. It was noted that performance had been
constrained by supply issues and cash constraints which are continuing and
that sales in November and December were expected to be lower than previously
forecast.

This led the Board to conclude that it is in the best interests of all
stakeholders to explore strategic options for its remaining business JF
Renshaw. The Board of JF Renshaw consequently resolved to appoint Interpath
Advisory as its adviser to assist with the review of all strategic options,
given a challenging environment for the Company and the related cash flow
constraints, which included the sale of the shares or the business and assets
of JF Renshaw as well as sourcing external funding.

Discussions with respect to a sale of JF Renshaw are continuing, however the
Board has concluded that the likelihood of a solvent sale of the business and
assets of JF Renshaw is very limited within a constrained timeframe.  Given
the impact of the current operating environment on the Group, the Group's
limited working capital position and the consequential uncertainty regarding
the Group's financial position, the Board and the JF Renshaw Board have each
concluded that it is required to take the necessary steps to preserve value
for creditors. The Board and the JF Renshaw Board have each therefore filed a
Notice of Intention to appoint Administrators this afternoon, with a view to
appointing Richard Harrison and Will Wright of Interpath Advisory, as joint
administrators of the Group ("Joint Administrators"), within ten business
days.

Should Administrators be appointed, the outcome to creditors of the Group is
currently uncertain. Given the circumstances, the capital structure of the
Company and options open to it, the Board believes that there will be no
return to shareholders whether via a solvent sale of JF Renshaw or any
procedure in an Administration.

Shareholders are advised that there can be no certainty of the outcome of the
strategic options review. The Board reserves the right to alter any aspect of
the process or to terminate it at any time.

A further announcement will be made with an update as soon as practicable or
once further steps are taken to appoint the Joint Administrators

Suspension of Trading on AIM

In light of the uncertainty regarding the Group's financial position, the
Board also announces that it has requested a suspension of trading in the
Company's ordinary shares on AIM with effect from 07.30 a.m. tomorrow(the
"Suspension").

 

Enquiries:

 Real Good Food plc                                Tel: 0151 541 3790

 Mike Holt, Executive Chair

 Cavendish Capital Markets Ltd (Nomad and Broker)

 Carl Holmes / Abigail Kelly (Corporate Finance)   Tel: 020 7220 0500

 

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