Naked Brand Group exploring possibility of strategic brand divestment
Almost three months after announcing a new strategic direction, Sydney-based intimates and swimwear company Naked Brand Group Limited has revealed that it is considering the strategic divestment of one or more of its brands.
As further specified by Naked Brand Group, which completed a merger with New Zealand’s Bendon in June of last year, the company is particularly interested in exploring its strategic options for monetizing its heritage Fayreform brand.
Aside from Fayreform, the company’s current brand portfolio is made up of Naked, Bendon, Bendon Man, Davenport, Hickory, Lovable, Pleasure State, Frederick’s of Hollywood, Heidi Klum Intimates, Heidi Klum Man and Heidi Klum Swim.
Naked Brand Group has contracted Australian firm Allunga Advisory to explore a range of strategic possibilities but has not set a deadline to complete this process.
“Select brands within our portfolio, such as Fayreform and Pleasure State, have proven to be incredibly successful brands and are household names in select global markets,” explained Naked Brand Group CEO Anna Johnson in a release. “As an inevitable result of this success, we have had numerous inquiries about potentially purchasing a brand in our portfolio, inclusive of these brands.
“As a management team, we will consider offers made for select brands within our portfolio where we feel there is the opportunity to fortify our balance sheet, drive strategic growth initiatives and create value for our shareholders over the long-term. I look forward to providing updates on this front as appropriate,” concluded Johnson, who stepped into her current role in April of this year, at the time that the company revealed its new strategic direction.
Through its new growth strategy, Naked Brand Group intends to achieve an aggregate of $6.5 million in cost savings and has already abandoned unprofitable channels in the UK and EU, as well as select independent channels in Australia and New Zealand.
Naked Brand Group will not provide any further details about its exploration of strategic alternatives until such a disclosure is necessary or appropriate.
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