LONDON (ShareCast) - (ShareCast News) - AIM-listed Wynnstay said on Thursday that it plans to appoint administrators for its Just for Pets business following a "marked deterioration" in the trading environment.


The company, which issued a profit warning back in May on the back of weakness at Just for Pets, said changes in consumer buying behaviour, additional sources of competition and greater cost pressures have placed an increasing strain on the business, which has become loss-making.

Following a review and "extensive consideration of alternative solutions", Wynnstay has decided to give notice to its intention to appoint administrators.

For the six months to the end of April, Just for Pets generated £7m of revenues, or around 3% of the company's total revenues, and an operating loss of £0.25m.

Management expects to recognise exceptional charges relating to the write-off of net assets and associated costs.

Chief executive Ken Greetham said: "This has been an extremely difficult decision to make and we are saddened by the announcement of the notice of the intention to appoint administrators for the Just for Pets business. Having thoroughly investigated and pursued other options, it has been concluded that this was the correct path to take, both for Just for Pets and Wynnstay, given the difficult circumstances in which JfP has found itself in recent years.

"We will be working closely with advisers to ensure that Just for Pets employees, customers, suppliers and Wynnstay shareholders are best served."

At 1530 BST, the shares were up 0.5% to 510p.

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