Naked Brand Group Limited
apparel and swimwear, has provided a corporate update on the financial and
operational results of its proposed acquisition target, FOH Online Corp.
(“FOH”), the exclusive licensee of the Frederick’s of Hollywood global online
license.
FOH net sales for the trailing twelve months ended June 30, 2018 were
approximately $20.2 million of direct to consumer e-commerce sales, a 26%
increase as compared to $16.0 million for the trailing twelve months ended June
30, 2017. Since 1946, Frederick’s of Hollywood has set the
standard for innovative apparel, introducing the push-up bra, the padded bra,
and black lingerie to the U.S. The brand’s rich history has led it to become
one of the most recognized in the world.
“We are pleased to see that FOH Online Corp.’s sales have grown at such a
rapid rate in response to key improvements made over the last year,” stated Justin
Davis-Rice, Chief Executive Officer of Naked Brand Group Limited. “This is a
clear indication that FOH’s strategic pivot to their mobile platform with
multiple enhancements is not only driving improved customer retention, but also
new sales.
“We are in the final stages of negotiating the terms of our proposed
acquisition of FOH Online Corp. Assuming we are able to finalize terms and
enter into a definitive agreement with FOH Online Corp., we will seek to close
the transaction in the third quarter of 2018 and believe the integration into
our operations would provide a strong platform to drive the next phase of
growth of our e-commerce business and provide opportunities for operating
synergies with our extensive wholesale and retail distribution channels,”
concluded Mr. Davis-Rice.
About the FOH Online Corp. Transaction
The Company is currently seeking to acquire all of the outstanding common
stock of FOH in exchange for both shares of the Company and the forgiveness of
debt owed by FOH to the Company’s wholly-owned subsidiary, Bendon Limited. If
acquired, the Company would control FOH’s existing license to develop and sell
online intimates products, sleepwear and loungewear products, swimwear and
swimwear accessories and costumes products under the Fredrick’s of Hollywood
name. While the Company has conducted advanced negotiations with FOH, the
Company has not entered into a definitive agreement for the acquisition of FOH
and there can be no assurance that the acquisition will occur. The proposed
transaction is subject to negotiating the terms of, and executing, a definitive
agreement relating to the proposed transaction and obtaining various
third-party consents (which the Company and the shareholder of FOH are in the
process of seeking to obtain). Furthermore, the terms of the transaction are
still subject to discussion and may be changed as a result of any material
positive or adverse change to the business of either party. Accordingly, there
can be no assurance that a transaction will be entered into or that the
proposed transaction will be consummated.
About Naked Brand Group Limited:
Naked Brand Group Limited is a leading intimate apparel and swimwear
company with a diverse portfolio of brands. The company designs, manufactures
and markets a portfolio of 11 company-owned and licensed brands, catering to a
broad cross-section of consumers and market segments. Brands include Naked,
Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable, Pleasure State,
Heidi Klum Intimates, Heidi Klum Man, Heidi Klum Swim. Naked Brand Group
Limited products are available in 44 countries worldwide through 6,000 retail
doors, a growing network of E-commerce sites and 61 company-owned Bendon retail
and outlet stores in Australia and New Zealand. Brands are distributed through
premier department stores, specialty stores, independent boutiques and
third-party e-commerce sites globally, including Macy’s, Nordstrom, Saks Fifth
Avenue, Harrods, Selfridges, Amazon and asos among others. For more information
please visit www.nakedbrands.com.
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