Alexandra seeking Stock Exchange cash injection

Troubled West uniform maker Alexandra is hoping for a cash boost from stock market investors to help it fight back from the verge of collapse.

The Thornbury-based manufacturer said yesterday it wants to raise funds through a share issue on the Stock Exchange, in a bid to shore up a precarious financial position.

The depth of the crisis at the work wear firm, which employs 300 staff in the West, first came to light in September when it revealed it was in emergency talks with bankers to thrash out a loan deal. Failure to secure the lifeline would risk "significant doubt over the firm's ability to continue as a going concern", according to accountancy firm Smith & Williamson.

But the company and the bank have still not come up with a long-term rescue package.

Now it is pinning its hopes on a cash injection from investors who believe the new management team and a new strategy can help the business turn the corner. The firm's new chief executive Tim Gifford and finance director Elaine New joined Alexandra in July with the company in dire straits.

The firm returned a £10 million loss and saw sales slump 17 per cent in the six months to July last year.

The new senior management partnership is hoping to return Alexandra to growth by working more closely on bespoke manufacturing for clients, and it is hoping to find buyers at later dates.

Alexandra chief executive Tim Gifford said: "Our staff and suppliers should be reassured this is a positive step in the process of cementing Alexandra's long-term future, and achieving its goal of being the leading service delivery company in the working apparel market."