MBL in talks to sell two subsidiaries

29th Jul 2011 13:23

Struggling entertainment products distributor MBL Group has confirmed that it is in advanced talks to dispose of two of its subsidiaries. The group released a statement saying: "As of now, no deal has been agreed and there can be no certainty that a disposal will take place. A further announcement will be made in due course."Friday's announcement saw the share price plummet 7.27% to 12.75p in the morning trading session, bringing further woe to shareholders, who, since the share price high of around 180p in February 2010, have seen the group's value head south at a rate of knots. The rate of decline accelerated in March of this year after a major customer, supermarket chain Morrisons, announced its intention to terminate two contracts. In June, the group was in negotiations with Morrisons regarding contractual matters requiring resolution, such as the remaining residual asset "lock up" arrangement.MBL provides services to other supermarkets, such as the Cooperative Group and Sainsbury, along with high street chains such as Wilkinsons. MBL's share price was 12.75p down 7.27% at 13:45. NR