Crawshaw Group PLC (LON:CRAW) shares plunged on Friday as the UK butcher said it was considering an equity raise as it undergoes a restructuring to return to profitability.
The company said in its interim results in September that it has completed a review of the business and would implement a “change programme” to restore growth.
As part of the turnaround plan, Crawshaw is reviewing its corporate structure and investment in its hard-hit traditional high street locations.
READ: Crawshaw shares crash as its sales fall in ‘challenging’ high street market
In a Friday statement addressing media speculation about its next move, Crawshaw confirmed that it was “considering a number of remedial actions to address the key issues it has identified, which may include raising additional funding through an equity capital raising”.
It added: “No decision has yet been made by the board on these matters and the company will update the market in due course.”
In the first half to July 29, the company posted a loss before tax of £1.7mln, compared to a loss of £1.2bn last year. Revenue fell 1.9% to £21.6mln from £22.1mln a year ago.
Crawshaw blamed tough market conditions and issues that face its retail estate that has "too many high street stores and currently not enough factory stores".
In morning trading shares dropped 16.8% to 2p.