Portfolio Update – February 2017
Capital for Colleagues, the investment vehicle focused on opportunities in the Employee Owned Business (‘EOB’) sector, has for some time been party to ongoing discussions with the management and professional advisers of its investee company, FJ Holdings Limited (FJ) and of its wholly-owned subsidiary Ham Baker Adams Limited (HBA).
These discussions have been conducted with a view to securing sufficient alternative, third party equity and working capital facilities in response to FJ’s inability to control its working capital requirements.
The Company notes recent press reports indicating that certain of FJ’s subsidiaries and assets have been disposed of via a solvent transaction and that FJ and HBA were placed into administration immediately following this transaction. The transaction and subsequent move into administration were effected without reference to the Company.
Capital for Colleagues is in the process of ascertaining the circumstances of this transaction and the implications for the Company’s investments in those two companies. As at 30 November 2016, the Company’s investments in and loans to FJ and HBA were valued at approximately £1.3 million, of which £790k related to the carrying value of its equity stake in FJ.