Snoozebox appoints administrators

Snoozebox has appointed administrators after discussions with its primary lender failed to bear fruit.

The company, which has been in talks with its primary lender, SQN, concerning its debt repayment obligations and the longer-term capital structure of the group, has appointed Jeremy Willmont and Neville Side of Moore Stephens LLP as administrators.

It said that despite "constructive" discussions and a number of proposals being made, it now looks unlikely that Snoozebox and SQN will be able to agree a suitable debt servicing plan or longer-term capital structure.

"Without SQN's support the directors have concluded that the company is unable to continue as a going concern," it said, as the main trading subsidiary would not be able to pay its liabilities as they fall due.

Snoozebox said that the "significant debt burden" it took on in 2014 has been one of its largest challenges given the poor financial and operational position of the group when the directors began restructuring early last year.

"It is a challenge that the directors have sought to manage whilst aligning the company to a new strategy and being as transparent as possible with shareholders. However, the company has succumbed to the challenge. Given the significant progress the company has made with delivery of its new strategy since mid-2016, this outcome is clearly very disappointing for shareholders."

Snoozebox has applied for suspension of trading on AIM with immediate effect.