Bremworth said it was continuing discussions over extending the scheme implementation agreement after the delays in obtaining regulatory approval.<\/p>\n
The company said if an extension was not agreed upon, and the scheme was not implemented before August 7, either party could terminate the agreement, and the takeover would lapse.<\/p>\n
However, discussions have now ceased after a group of shareholders representing about 38% of shares, including interests associated with David Ferrier, as well as the Timpson, Harrison and Woolf families, committed to vote the scheme down.<\/p>\n
Bremworth\u2019s board said in a statement that it was \u201cfrustrated with the actions of these shareholders\u201d, noting they had chosen to pull support after the final regulatory hurdle was achieved but before the provision of information.<\/p>\n
This includes the independent adviser\u2019s report, necessary for shareholders to assess the merits of and counter factual to the scheme.<\/p>\n
\u201cThis has taken away genuine choice for Bremworth\u2019s remaining 2300+ shareholders, including minority holders,\u201d the company said.<\/p>\n
\u201cTo date, the opposing shareholders have not offered any alternative plan for the Bremworth business nor details of any alternative acquirer willing to make an offer at or near the level of the Floorscape Scheme.\u201d<\/p>\n
Bremworth said it engaged with Floorscape in good faith, and continues to believe that the scheme was in the best interests of Bremworth shareholders.<\/p>\n
\u201cIt is disappointed that shareholders were not given the opportunity to vote on the scheme with the benefit of all relevant information.\u201d<\/p>\n
With the scheme now lapsed, the board said it would continue to execute on its previously stated initiatives aimed at achieving profitable growth and positive cashflows.<\/p>\n
Bremworth said it had made progress on several initiatives aimed at fundamentally improving performance, with priorities being cost reset, revenue recovery and capital discipline.<\/p>\n
Wool carpet sales in New Zealand and Australia are ahead of last year, although overall trading in both markets remains challenging. <\/p>\n
Macro-economic headwinds have put pressure on consumer spending, particularly in the construction (new build and renovation) markets, with a flow-on impact on flooring demand, according to the company.<\/p>\n
In line with expectations as communicated to shareholders in February 2026, Bremworth was not cashflow positive or profitable in the second half of the 2026 financial year.<\/p>\n
The company will provide further detail when it announces its full-year preliminary financial results by the end of August 2026.<\/p>\n