SYDNEY, Australia — Intimate apparel company Naked Brand Group Limited (NBG) has announced a continuation of its transformation into an e-commerce platform.
Company sources report that NBG has "solidified its balance sheet with the completion of multiple strategic capital financings resulting in cash proceeds of $270 million and the elimination of all previous debt servicing obligations.”
NBG, according to the same sources, “also regained compliance in late February under Nasdaq listing requirements (NASDAQ:NAKD) and is in the final stages of receiving the necessary regulatory approval and preparing to seek shareholder approval for the previously announced divestiture of its brick-and-mortar operations.”
The company expects to complete the divestiture of its Bendon brick-and-mortar operations in the second calendar quarter of 2021, allowing NBG to focus "exclusively on the planned rapid acceleration of its e-commerce business."
“In conjunction with the digital transformation, the company will be able to leverage its brand and platform to build out proprietary technology to meet the needs of consumers in today's digital world,” a rep explained.
CEO Justin Davis-Rice commented that, "This additional capital will further transform our balance sheet, and now with over $270 million in cash and no debt we are strategically positioned to pursue accretive acquisitions of high growth and cash flow-positive businesses.”
”Our strong balance sheet further solidifies the opportunity to be a conduit for industry consolidation as we seek to invest in next generation technology that will enable our customers to access and experience the best brands using world class technology solutions,” Davis-Rice added.
Realigning the Leadership Team
NBG has realigned its leadership team with the re-appointment of Davis-Rice as CEO, and the appointment of investment banker and M&A exec Simon Tripp to its Board of Directors, in order to assist in building out the e-commerce platform.
Tripp has over 30 years of diversified business, capital markets and investment banking experience, managing both public and private companies across various sectors.
"This is a very exciting time for e-commerce as the COVID-19 pandemic has brought forward a complete ‘digital first' environment across all brick-and-mortar consumer outlets," Tripp offered. "The acquisition environment is rich with opportunity at attractive valuations and we have already begun working with Justin and his team to identify potential opportunities. Naked is focused on innovative technology offerings, including a best-in-class personalized shopping experience utilizing A.I. and other technologies that will uniquely position it as a disruptive player in online intimate apparel.”
NBG previously entered a letter of intent to sell the Bendon brick-and-mortar operations to a group controlled by CEO Davis-Rice and Anna Johnson, Bendon's CEO. However, the parties report that “they have not entered into a definitive agreement and, accordingly, NBG cannot provide any assurance that the divestiture will be completed on the terms previously disclosed, or at all.”
The divestiture of the Bendon operations would include the Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable and Pleasure State brands.
