The company has been troubled by poor trading and was hit by the closure of a tax loophole that allowed products to be sold into the UK from the Channel Islands without value added tax being charged.

It recently sold mail order businesses that ranged from flowers to bird supplies.

It is left with a £3.3 million farm in Jersey and has £625,000 due from the sale of its Gardening Direct arm.

But a £750,000 loan must be repaid this year. Flying Brands posted a £2.2m pre-tax loss for the six months to June 29.

Chairman Tim Trotter said Flying Brands had had preliminary talks about bringing other businesses into the company.

But he warned that the board might decide simply to return cash to investors.

Shareholders responded by sending its stock up 1.12 to 6.5p.

Finance director Stuart Dootson has stepped down, to be replaced by financial controller Chris Knott.

Directors Gerald Voisin and John Henwood will resign with effect from September 30.

Mr Trotter said he would step down as chairman at the end of this year. Paul Davidson, a partner of Sir Tom's West Coast Capital, remains a non-executive director.