Following the Cenntro acquisition, the combined company continued to trade under the NAKD ticker symbol. Such transitions rarely pan out well for shareholders, and Naked Brands is a prime example of a jarring business shift that appears to have wiped out most of the existing value of the original company. On Thursday morning — the day after BI reached out to the agency for comment — the head of the Secret Service’s Boston-based field office called Powers to apologize, she said. “Me and my dad own the building, and I have a crazy eccentric guy that lives upstairs,” Smith told BI.
The Naked Brands Merger Is Either a Brilliant Move or a Cautionary Tale
Hundreds of the drugstore’s pharmacies inside Targets were slated for closure and the company also plans to reduce its workforce. CVS said it was part of a plan to optimize the spacing of its sites across the country. Some 600 Family Dollar stores were shuttered this year, with hundreds more closures planned over the next few years as the discount retailer’s location leases come to an end. But Red Lobster is not alone; several other food outlets are also closing down.
Fashion
It has focused almost its entire efforts on its brick-and-mortar business, which has crippled its margins and limited sales growth. However, it has finally realized the error of its ways and plans to become a pure-play e-commerce platform. Like many meme stocks, NAKD has dropped dramatically from the highs it achieved in 2021. Over the last 12 months, the stock has lost nearly 80 percent of its value. This negative view of the stock is also reflected in the tiny share of the company that is owned by institutional investors.
Naked Brands Has A Tall Order Ahead In Revamping Its Business
It has effectively eliminated all its debt obligations, and its strategic capital financing efforts have resulted in cash proceeds of $270 million. Therefore, it is well-positioned to go full steam ahead with its e-commerce initiatives and a move towards a cash flow positive business. The company’s one-dimensional business model has held it back for several years now.
The company currently boasts an Instagram following of 1.3 million. They declined to say which retailers, but described them as some of the major names in the U.S. “I did have goals and envisioned celebrities that would eventually one day be wearing our brand,” Shida Kaviani said. I like to see both sides of the coin to stay informed and to make an educated decision. However, I am simply relaying the information which I am coming across. Please let me know if you have anything to add in the comments below.
Naked is a popular stock among investors on social media sites like Reddit. This popularity helped to drive its share price sharply higher earlier this year. Naked took advantage of the opportunity to raise cash by selling shares. That, combined with its asset sales, allowed Naked to eliminate its debt and placed it in a position to potentially acquire other e-commerce businesses.
“And he didn’t tell the Secret Service they could use it, and I didn’t tell them, and my father didn’t tell them, and they had no permission to go in there whatsoever.” But what bothered her was what she saw as sheer disregard for her business, by entering without permission and leaving the place unlocked when they left, she said. The people who entered the Four One Three Salon didn’t do much damage aside from leaving an untidy bathroom behind, Powers said. “And then when they were done using the bathroom for two hours, they left, and left my building completely unlocked, and did not take the tape off the camera,” she continued. “There were several people in and out for about an hour-and-a-half — just using my bathroom, the alarms going off, using my counter, with no permission,” Powers said.
In the first month of this year, Naked Brands stock jumped about 750%. However, the company was not making moves that suggested its plan to become an e-commerce only business was going to be successful. However, the more interesting story to me is how retail investors helped to fund this transaction. The large increase in the company’s stock was used to turn Naked Brands into, essentially, a special purpose acquisition company (SPAC).
At this time, there are no standing analyst price forecasts for Cenntro stock. Overall market sentiment, however, appears to be quite negative. Although Cenntro shows no immediate signs of going out of business, it’s certainly a possibility. Steep losses, a limited cash reserve and fierce competition could all spell trouble for the company. A final component of this question is the fact that part of Cenntro’s management team is still made up of executives from Naked Brands. The question of whether Cenntro Electric Group will go out of business is perhaps more complicated.
The pharmacy chain closed an eyewatering 520 locations—a quarter of its stores—within just seven months after filing for Chapter 11 bankruptcy, Bloomberg reported on May 3. Even behemoth Best Buy has not escaped unscathed, with the electronics chain announcing plans to cut up to 15 stores by next year. The company revealed its decision in a quarterly earnings call at the end of February.
- All 371 U.S. stores run by the discount chain will be shuttered as the business winds down, the company’s interim CEO Mike Simoncic announced in April.
- The company launched denim in April, which retailed from $80 to $102 — higher prices in comparison to other pieces they carry.
- Judging by the effort which is taking place to ensure the price stays the same, investors are holding for good reason.
- Powers told BI that an EMS worker later told her the Secret Service agent in charge of security that day “was telling people to come in and use the bathroom.”
Walmart is shuttering nine of its locations in the U.S., blaming financial underperformance for the decision. The company launched denim in April, which retailed from $80 to $102 — higher prices in comparison to other pieces they carry. However, the most expensive pair was what ended up selling out first.
“We have recently reached a preliminary agreement on non-binding terms and are now conducting due diligence,” chairman and CEO Justin Davis-Rice said during Naked’s annual shareholder meeting on Friday. “The company is in a sector which has been forecast to have strong growth for many decades to come.” Shares of Naked Brand Group (NAKD) jumped 10.1% on Friday after the swimwear and intimate-apparel company announced that it reached a preliminary agreement on a potential acquisition. Considering the financial, competitive and management risks of Cenntro Electric Group, it’s far from difficult to imagine that the company could eventually go out of business. Given that the company’s cash stockpile is currently just over $60 million, it will only be able to operate at this kind of loss for a few more quarters before depleting its reserves.
Naked Wardrobe is helping shake up the definition of what defines fast fashion today. Moreover, it expects to wrap up the divestiture of its Bendon brick-and-mortar operations by the second quarter of this year. Additionally, Naked has also made changes at the top to realign its leadership team to pursue its e-commerce goals. This has led to the appointment of Simon Tripp, an experienced investment banker, and Mr.Davis-Rice as the CEO. Financhill just revealed its top stock for investors right now… As of this writing, just 8.25 percent of Cenntro Electric Group is institutionally owned.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Cenntro is a startup that was privately held before this transaction. Investors will know more about the company’s financials moving forward. And with 2021 revenue of $25.3 million that is projected to climb to $2.1 billion in 2023, there’s reason for optimism. As David Moadel pointed out, this isn’t an evolution; it’s a transformation.