Ocado has hit out against claims that the UK online grocery retailer needs float to stay in business.
A report in the UK this weekend said the future of Ocado was in doubt after the disclosure that the company may not be a going concern without the sale of shares and a new GBP100m (US$150.8m) loan that depends on the successful float.
Go deeper with GlobalData
However, an Ocado spokesperson told just-food it was “completely misleading” to suggest that there was a funding issue at the company.
“The going concern qualification in our accounts is a technical issue which has been there consistently for the last nine years because of the rate of our growth over that period,” the spokesperson said.
“The company doesn’t need to raise GBP200m, but it is choosing to do so to grow the business and build a second CFC. It is ridiculous to suggest that we would not be able to continue in business if we did not do the IPO or if we did not raise the GBP200m.”
See Also:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
