Polestar has urgent funding requirement, secret report reveals

Polestar, the largest magazine and supplement printer in Britain, has at best only got sufficient funds to trade solvently until Christmas Day, a report has warned.

The group, which is owned by Sun Capital, commissioned Deloitte to assess its potential options, which have been summed up in the secret document seen by the Sunday Times.

It says that Polestar has "an additional immediate and medium-term funding requirement" and that it has four options going forward.

These are insolvency, a pre-pack administration sale, a debt-for-equity swap and a cash injection, and a fast-track sale.

Solvent restructuring is the "preferred option", according to the report.

The company required £18m to operate for another year, although this could be reduced by cutting costs, it predicted.

Polestar chief Barry Hibbert said administration was seen by the board as "a highly unlikely outcome".