Lingerie company Naked Brand Group Limited is postponing the previously announced plan to receive a $25 million strategic investment from Sapinda Holding B.V.
“Unfortunately, the recent stock market volatility has compromised our ability to maximize our proposed investment relative to substantial dilution based upon Naked’s current share price,” said Lars Windhorst, co-founder and CEO of Sapinda, in a news staement.
“We hope to re-evaluate the proposed transaction once market conditions stabilize and look forward to building a long-term partnership with Naked in the future.”
The company announced in August that it entered into a non-binding term sheet with Sapinda, as the potential partners considered possible operating synergies.
The investment was also expected to provide capital to go towards funding strategic acquisitions, as well as Naked’s global e-commerce and direct-to-consumer initiatives.
At the time, Windhorst thought it was the perfect time to push forward with the company’s development and expansion, as Naked had just completed a merger with intimates brand Bendon.
“We remain committed to our e-commerce initiatives and look forward to working with Sapinda in the future,” added Justin Davis-Rice, chief executive officer of Naked Brand Group Limited.
“While we can’t control market conditions, we always keep the interests of our shareholders paramount and expect to provide a comprehensive update on our soon to be announced shareholder update call in November.”
Naked Brand Group Limited’s portfolio includes 11 company-owned and licensed brands such as namesake labels Naked and Bendon, as well as Davenport, Pleasure State and Heidi Klum Intimates.
The company’s products are distributed in 44 countries through 6,000 multibrand retail locations, as well as 61 branded Bendon stores in Australia and New Zealand, and a number of e-commerce platforms.