ScS says in talks to raise working capital

LONDON, June 15 (Reuters) - Sofa retailer ScS Upholstery SUY.L said on Sunday it was in discussions with a number of external parties to raise additional working capital after the unexpected withdrawal of credit insurance from the market.

The group said in a statement its conservative financing structure had been previously considered appropriate but the sudden withdrawal of credit insurance had placed a strain on the working capital needs of its suppliers.

"We continue to trade with all our suppliers with whom we have a symbiotic relationship and we are working to address their and therefore our, working capital requirements," it said.

"Currently we are cash positive with no net debt."

Shares in the group fell over 50 percent last week after it said that one company had withdrawn credit insurance.

The Sunday Times reported that ScS had appointed advisers at Ernst & Young to restructure the company. But it said if this failed, KPMG had been lined up as administrator. (Reporting by Kate Holton, editing by Elizabeth Fullerton)