Fashion retail group Alexon has confirmed today that it is discussing the sale of capital in the company with more than one interested party but no formal offer has yet been made.
This is a response to recent press speculations over potential investors and comes as the firm announces a slowdown in sales during August, with trading for the first three weeks of that month down nine per cent year-on-year on a like-for-like (LFL) basis.
Full-year profit predictions have been now been slashed by the retailer, as sales for the first half of its financial year dropped eight per cent in total and grew just 0.7 per cent LFL.
A statement from the company read: “Since the interim management statement on July 7th the trading environment has deteriorated, most notably in August.
“Accordingly, having undertaken a re-forecasting exercise, the board now expects the group’s performance for the year to be well below its previous expectations.”
Online trading for Alexon had grown 118 per cent on last year by the half-year point but this segment still only represents eight per cent of the total sales mix.
Despite the difficult trading environment it has claimed early success for its re-fitted stores, double digit LFL sales growth for its Kaliko and Alexon brands and a number of new business opportunities for spring 2012.
In July the company admitted however that it needed new capital to invest in the turnaround of the business but as yet it has not managed to secure extra funding.
Today’s statement continued: “The board confirms that it continues to actively explore a number of options for a more appropriate capital structure. One of the options under review is a possible offer for the issued share capital of the company.
“The company is in discussions with more than one party, however no firm proposal has been received in this regard and there can be no certainty that a formal offer will be made for the company in due course.
“Further announcements on this matter will be made as appropriate.”