Albemarle & Bond, a leading pawnbroker in the UK, recorded a fall of 60 per cent in its shares yesterday after it was revealed that the company failed to secure cash infusion from its shareholders.

The second largest pawnbroker in the UK has said that it is in talks with its banks for possible deals in order to avoid potential covenant breaches. The company has been affected by falling gold prices in the country in recent times. The gold prices have fallen from the level of $1,780 an ounce in the previous year to around $1,315 this year.

The company said that it is in discussions with the EZCorp International for an equity raise of £35 million in order to raise capital for meeting its obligations. The company's debt stood at £51m at the start of this week and it said that it would appoint a new chief restructuring officer by 10 October.

"Unfortunately, the company has not been able to conclude these negotiations to the satisfaction of the board," it said

The company had benefitted greatly from rising gold prices in the previous year and had announced expansion plans in the country. Stringent bank lending norms had pushed more customers to look towards gold as options to raise cash.