FLYING Brands, the former mail order company in which Sir Tom Hunter's West Coast Capital has a 27 per cent stake, has sold a property to raise funds to repay debt.
The company said it sold Retreat Farm, Jersey, to a property firm for an aggregate cash consideration of £1.65 million, compared with a book value of £3m at December 27.
The proceeds will be used to repay a loan of £1,010,000 from Acorn Finance and pay an agreed settlement of £150.000 to an Australian firm arising from matters relating to the disposal of the group's gifts business.
Flying Brands said: "In reaching its decision to sell the property for an aggregate consideration of £1.65m the Board took into account the advice of local property agents after they had carried out their marketing process, the fact that the Company had explored a wide range of options to develop the property itself in its pre-application discussions with the local planning authorities without success, the group's limited financial resources and its need to repay its loan to Acorn Finance in January 2015."
Flying Brands previously sold off mail order businesses that ranged from flowers to bird supplies after suffering trading setbacks.
Directors said Flying Brands will take a short period of time to consider the best options for the use of the £400,000 net proceeds of the sale and for the Company and will make a further announcement before the end of the year.
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