A planned buyout by Irish baking company McCambridge Limited of troubled UK firm Inter Link Foods will not go ahead after shares in Inter Link were suspended following the collapse of takeover talks.
Inter Link said the buyout would not now proceed as the UK company's bank was not able to agree to a pre-condition that would have forced the lender to "compromise" its position. Inter Link said it had requested the suspension of its shares pending clarification of its financial position.
Inter Link remains in talks with a number of parties over the possible sale of the business and said its bank continued to support the company's trading requirements while that process took place.
The Blackburn-based firm has been hit by a series of profits warnings, leading to an underlying loss for the year to the start of this month.
As well as tough trading conditions, the business has been disrupted by its switch to a new central distribution centre at Warrington.
Inter Link employs around 1,800 people but recently shed 120 posts as part of £2 million of annual cost savings.
PA