Seymour Pierce, the famous and long established City broker is in crunch talks to with possible investors to prevent it falling into administration. It is reported that the Grant Thornton have been lined up as possible administrators. From these reports they may have filed a notice of intention to appoint administrators to give them some protection from creditors for 10 days. A notice of intention may be extended if a buyer is close to a deal. The company said it was confident that a buyer could be found, maybe over the weekend.
Seymour Pierce Holdings made a pre-tax loss of almost £600k in the year to September 2011, according to its latest published accounts. The board said at the time this was “a reasonable result in the light of the extremely difficult trading conditions”.
It is understood that their rivals Panmure Gordon were looking to inject some cash but the deal fell through.
The collapse in deals since the financial crisis has hit a number of well known brokers and advisor such as Collins Stewart, Hoare Govett and Evolution, which have been taken over.