GGLING home shopping retailer Flying Brands, in which entrepreneur Sir Tom Hunter owns a stake, yesterday confirmed the disposal of a building on the island of Jersey, as it attempts to pay off its £1.7m banking loan.
Jersey-based property developer JAJ Properties has agreed to pay £2.1m in cash and ten per cent in any eventual development profits for the Retreat Farm premises, which is currently unutilised office space.
Last week the Flying Brands admitted that it could breach its banking covenants due to poor trading.
Despite only renegotiating the terms of its loan facility in April of this year, Hunter has seen his stake in Flying Brands fall by 97 per cent after the online retailer issued another profit warning and said it might breach its banking covenants.
Flying Brands renegotiated the terms of its banking facilities in the first half of its financial year despite reporting a loss from its continuing operations of £480,000 plus a £1.49m loss from its discontinued businesses.