The board of Koovs has decided to place the business into administration after failing to secure additional funding to continue operations. Its founder is expected to acquire the brand and assets out of administration.
Koovs continues to be lossmaking but its losses are reducing as margins improve and its recent funding round has left it confident of future growth in a market where only 1% of sales currently happen online.
The company announced that Future Lifestyle Fashions Limited has agreed to subscribe for up to a 29.9% stake in Koovs in a ‘transformational’ deal that will help it raise cash and reach more customers.
London-listed fast fashion e-tailer Koovs is scoring big on customer satisfaction in the Indian market with the firm having just said that it achieved the highest NPS (Net Promoter Score) in a key study.
London-listed Koovs has been facing cash flow issues in recent periods and has been focused on preserving cash, but on Monday it said it has struck a deal worth £24 million as part of its financing drive.
London-listed fashion e-tailer Koovs has delivered a trading update, unveiled a strategic plan to “deliver scale and profitability” and has also announced that it wants to raise £50 million as its cash reserves are low.