DISCOUNT fashion chain Blue Inc has pulled its £60m flotation plans just weeks after they were announced, after a disappointing performance for London’s recent initial public offerings.
The company last night said it would instead proceed with a private share placing with institutional investors, given demand remains strong.
On 30 May, Blue Inc had announced plans to raise £15m from the listing to fund its “roll-out of the successful new store format, expansion of the store estate, further product development, increasing online presence through marketing and promotional expenditure as well as negotiating improved supplier terms”.
The scrapped float is expected to be another blow for Sir Stuart Rose, former executive chairman of Marks & Spencer, who had been chairman of both Blue Inc and Fat Face before stepping down from the latter in order to avoid a conflict of interest as it explored plans to float.
Last month Fat Face scrapped its own plans to list amid market fears.