Cosalt in “urgent discussions” following deterioration in working capital.

Marine safety equipment provider Cosalt said today it is in “urgent discussions” with its major shareholders and banks after it only has a week’s working capital remaining.

The Grimsby-based firm, which is the subject of a takeover approach from its chairman David Ross, said it only has £900,000 of bank facilities available.

The board is in the process of appointing restructuring advisers to assess the options available to the company for realisation of assets or refinancing.

In a statement, the company added: “The independent directors and the company’s advisers continue to progress discussions with Mr Ross and his advisers relating to Mr Ross’ possible offer.”

Mr Ross, the co-founder of Carphone Warehouse, said last week he would be prepared to pay 0.1p for each share in the busines, which values the business at just £404,000.