Alexon starts formal sale process
Struggling fashion group Alexon has announced that it is initiating a formal sale process for the business. The move follows news last week that the group had issued a profit warning and was in discussions with potential buyers for the business.
Alexon said it was considering an offer at a “significant” discount to the current share price.
Interested parties who have approached the company have been asked to enter into non-disclosure agreements before being permitted to participate.
Alexon said that indicative proposals were requested by 16 September and one proposal had been received and was currently being considered. Those parties taken forward to the next stage will be given access to additional information and management before being asked to submit a final proposal.
The group said its net debt as of 16 September was £12.9 million. While exploring its options to put together a more appropriate capital structure, the group said it was operating with limited headroom against its existing facilities and there was a requirement for additional funding in the short term as it enters the seasonal peak in working capital requirements.
In light of this, Alexon said its has also invited and received indicative proposals to acquire one or more of the group’s brands to provide alternative debt financing from a number of trade and financial parties. The group said the proposals are currently being considered by the Board and the company's advisers.
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