Online retailer Unbound Group which owns Hotter Shes has launched a strategic review of its business as it deals with the ongoing impact of difficult trading conditions.
As previously reported, it had received interest in acquiring its business from WoolOvers but, whilst this was initially recommended by the Unbound board to shareholders, the Unbound board was then attracted by an alternative option presented by Marwyn Investment Management. However, the Marwyn talks were abandoned.
This now leaves Unbound Group with the challenge of managing through a period of tough cash constraints if it is to service its existing borrowing. The board says that this could damage its long-term growth prospects and this has led to considering a formal sale process for the whole company, or for its main operating subsidiary, as well as the option of raising additional funding.
It has paused all of its international sales and marketing activity to save costs and is also reviewing its business in the USA where it derives over ten per cent of its revenues.
There has been no specific mention of where Unbound Group’s development of a multi-brand online marketplace targeting the over 50’s market currrently stands in the ‘great scheme of things’.
Interpath Advisory has been appointed as joint financial adviser with Singer Capital Markets Advisory, its incumbent financial adviser and broker, to manage the ongoing process.
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