- The deal to sell physical store retail business, Bendon, to focus on e-commerce business sounds encouraging.
- The divestiture deal is a related party transaction, as the buyers are groups controlled by Naked Brand's chairman and CEO, and the current CEO of Bendon.
- Naked Brand has to forgive the intra-company loan, further fund Bendon with loan and cash payment to reach Bendon's target inventory level.
- Naked Brand has raised a lot of money for growth. On the other hand, a lot of units, shares and warrants have been issued, diluting current shareholders. We expect with the fully diluted number of share outstanding, there would not be much upside left for shareholders at the current price.
For further details see:
Not Much Upside For Naked Brand