Although the company, SB&T (UK) Ltd, has the support of shareholders and there is no suggestion that it could collapse, the revelation may prompt questions in the City about Ratner’s ability to finance a bid for the UK arm of Signet, which includes H Samuel and Ernest Jones.
Ratner is seeking backing for a £200m bid for the business he founded in the 1980s. He lost control in 1991 after a speech in which he joked that a product in his shops was “total crap”. His approaches have been rejected by Signet, but this weekend Ratner said he would push ahead.
Latest accounts filed by SB&T — which supplies jewellery to TV shopping firms and provides services to online retailer Geraldonline.com — includes a warning about its financial strength.
In its report to shareholders, auditor BSG Valentine warns “these conditions indicate the existence of a material uncertainty which may cast doubt about the company’s ability to continue as a going concern . . . the company is dependent on the financial support of its parent undertaking”.
Ratner, a director of the company and major shareholder, dismissed the auditors’ concerns. “I’m not in the slightest bit worried. If the company needed an injection of cash, we would put it in,” he said.