Gala bingo to be split?
27th July, 2009
The future of Gala Coral is being discussed due to financial difficulties, reports in the Observer suggest. The Royal Bank of Scotland, who has a stake in the company, may suggest that the group is split to help reclaim debts and push the business forward.
However, a Gala spokesperson has denied such a split. “We are not looking to sell off assets or break up the group. We have £200m on the balance sheet and we are not seeking an equity injection."
Despite these comments, the Observer newspaper has seen a presentation which was sent to potential investors and that Gala are thinking about a variety of cash raising strategies, stating that current investors, "Candover and Permira are financially strained and unlikely to inject any more equity."
Within the presentation, the Royal Bank of Scotland say that there are opportunities for up to £250million in investments however does strongly state that this will not give the investor any control within the business.
Gala bingo has previously had £125million injected into the business which had little effect and has been ‘written off’ within the business. In addition to Gala’s woes, they are currently fighting a multimillion pound tax reclaim and the dire effects of the Governments 7% bingo tax increase.
By Faye
