leahortez86

leahortez

THE future of ladieswear firm CDU is hanging in the balance after it announced its banking facilities are unlikely to be extended beyond the end of the month.

Shares in the Leek business, formerly Slimma, are currently suspended on the Alternative Investment Market (AIM) and will stay that way until further notice.

Directors have told the London Stock Exchange that following "in depth" discussions with its bankers, Lloyds TSB, it is unlikely that its banking facilities will be renewed beyond March 31. It is also unable to comply with AIM's requirements to dispatch its annual report and accounts for the year to October 1 to shareholders by March 30.

A spokesman said: "Accordingly, CDU is now facing a period of financial uncertainty pending clarification of what actions its bankers will take if and when the banking facilities are not renewed and the effect of those actions on the company's financial position.

"The board are currently considering the options available and a further announcement will be made in due course.

"In the meantime, the company's shares will remain suspended from trading on AIM until such time as it files the 2010 accounts and has clarified its financial position."

Leek mayor Robert Plant, pictured, said: "We will have to wait and see what happens but if the clouds get any darker the situation doesn't look good.

"I will certainly be keeping my fingers crossed along with many other people in Leek."

The Sentinel reported last month that Slimma had changed its name to CDU after selling its Slimma and Splendour brands in a bid to cut costs and borrowings.

Directors admitted the sale would result in some redundancies, but did not reveal an exact figure.

In the mid-1990s, the Barngate Street firm employed 600 people at its sites in Leek, Etruria and Cannock, but that figure has now dropped to less than 40.

Its Cannock factory was closed in 1998 and by 2003, 92 per cent of its production had been moved abroad. Production came to an end in Leek in 2005 when its last 16 manufacturing employees were axed.