Leeds Group PLC (AIM:LDSG), the textile importer and seller, slipped 7% to 13p after it reported much of its cash in reserve will be used towards the insolvency of its subsidiary.
Stoff-Ideen-KMR, a subsidiary of Hemmers, which itself is the German trading subsidiary of Leeds Group, was placed into an insolvency process on 7 October.
According to a statement, Leeds group has £1.8mln in cash in the bank as of 30 November, of which £1.6mln is related to KMR.
“This will be used by the insolvency administrator to pay any outstanding KMR liabilities including £863,000 of bank debt,” Leeds Group said.