Torex Retail board welcomes sale

But shareholders are left with nothing

Torex provides check-out software to McDonald's

Torex Retail has defended its decision to sell the assets of the trouble software firm to a private equity fund, leaving shareholders and unsecured creditors with nothing.

Holding company Torex Retail Plc will go into administration when Cerberus buys its assets for £204m, which will cover just outstanding debt and liabilities.

The company, which provides software to McDonald’s and Tesco, suspended its shares in January following a shock profit warning and is also subject to a Serious Fraud Office inquiry into accounting irregularities.

But Torex Retail chief executive Michael Greenough says he is delighted with the announcement, which will give it a strong financial foundation for the future.

‘This foundation will enable Torex to pursue its strategy,’ he said. ‘Torex has a tremendous product suite, world class customers and a global footprint, and we are excited about focusing on our future opportunities.’