Surf wear firm Hot Tuna (International Plc) has revealed plans to sell the Hot Tuna brand amid problems raising capital to develop the business.

Shareholders' interests would "best be served by seeking a buyer for the Hot Tuna brand and all the assets and liabilities of the company," the group said today (14 November).

Following the sale of the company, Francis Ball, Geoff O'Connell and Oscar Verden plan to step down from the board, while Marcus Yeoman will remain. Unencumbered by the brand, the shell company will then focus on identifying attractive acquisition opportunities for Hot Tuna International plc.

"The Board and management team remains enthusiastic about the future of the Hot Tuna brand, and expects the current rate of sales growth, and improved margin, to be sustained," said executive chairman Francis Ball.

"It is unfortunate that the current equity funding environment makes it very difficult for us to raise further capital and as a result we believe that the future of the business, its customers, distributors, suppliers and employees is best served through a sale of the brand," .

The firm said revenue for the year ended 30 June will be "in-line" with expectations, but the "continued focus on cost control" during the financial year means losses will be lower than previously forecast.

"The retail environment continues to be challenging in the UK, US and continental Europe which is undoubtedly impacting revenues in the current financial year.

"Action has already been taken to reduce costs. However there is a need to invest in and promote the Hot Tuna brand, and our rate of growth, whilst encouraging, is slower that previously expected."