Aquascutum auditors won't commit to firm being a going concern - report
Aquascutum's auditors have warned the upmarket clothing label may not be able to continue as a going concern unless financing is secured, according to a report at the weekend.
Auditors at Grant Thornton said in Aquascutum’s latest financial accounts that its liabilities exceed the value of its total assets by £27.6m, casting a doubt on the company’s ability to repay its debts.
Aquascutum, which was acquired by Shandong Ruyi Technology Group in 2017, said its Chinese owner will provide sufficient funding to meet its liabilities, according to The Sunday Times.
But the Chinese textile manufacturer, once touted as the LVMH of China, has its own problems. After going on a multi-billion buying spree over the past four years to acquire Swiss handbag maker Bally, France’s SMCP and Japanese suit brand Renown, the group is facing significant debts.
The Chinese conglomerate has also been taken to court by a Portuguese supplier to Aquascutum over unpaid invoices worth more than £155,000.
In the nine months to December 2018, Aquascutum made a loss of £3.7 million on sales of £5.83 million.
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