Qualceram shares suspended as bank talks stall

Bathroom suite maker Qualceram Shires has requested the suspension of its shares today following the apparent failure of talks with its bankers and landlord aimed at shoring up its financial position.

The company has been in talks with its landlord and banks since last year about the disposing of surplus properties and renegotiating rents.

“The board now believes that it is unlikely that a satisfactory outcome to these discussions will be reached,” said the group in a statement today. A further announcement is expected this evening.

The company is understood to be discussing a range of options this afternoon which may include some form of corporate rescue or an insolvency procedure such as examinership or receivership, if it cannot meet debts falling due.

The company terminated offer talks for the business last year after potential buyers were hit by the credit crunch.

Qualceram has been hit hard by a protracted slowdown in the Irish and British property markets and has cut jobs and reduced output in response to this lower demand.

Last month Qualceram said it was in talks with its landlord, WM Carey seeking a waiver of some conditions in its lease. It has also been in talks with its bank HSBC.

In an interim management statement Last November Qualceram said sales for the 10 months to the end of October were 30 per cent below the same period in 2007.

Qualceram makes and distributes bathroom suites under the Qualceram, Shires, Shaws of Darwen and Trent brands and owns Selecta showers.