Technology repairs chain iSmash is exploring a possible sale after auditors flagged a “material uncertainty” over its future amid widening losses.
The retailer, which has 38 locations nationwide, has approached potential suitors as it explores options to turnaround its ailing fortunes, The Times reported.
iSmash plunged further into the red in the year to 30 December 2022, with pre-tax losses more than doubling to £5.9m as a result of a “significant reduction” in pandemic-related government support.
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Its auditors Saffery LLP warned that losses at the retailer, which counts Carphone Warehouse co-founder David Ross as an investor, would widen in 2023 and it would require additional funding to meet its obligations.
The chain has received funds from shareholders of its parent company as it continues to explore other options.
However, its auditors warned the reliance of ongoing financial support from shareholders indicated a “material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern”.
An iSmash spokesman told the publication: “The pandemic created a challenging business environment for all high-street retailers. We have responded with [an internal] restructuring that is making real progress.”
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