Alexon trumpets £20m cash call for growth
Friday 05 March 2010
The ailing fashion group Alexon has unveiled a £20m cash call to accelerate its growth plans, although it plans to close 42 loss-making stores over the next three years.
Alexon, whose brands include Ann Harvey, Dash, Eastex and Kaliko, plans to raise £18.5m (net of expenses) in a firm placing and open offer at 20p a share, which represents a 41 per cent discount to the closing price yesterday.
Jane McNally, the chief executive of Alexon, which operates standalone stores and concessions, said: “It is fantastic news for the company. Not only does it secure the financial future of the company but it also allows us to accelerate the turnaround plan.”
Alexon has also secured new banking facilities with Barclays, including a £8m revolving credit facility that expires in March 2013.
Ms McNally, who joined Alexon from Peacocks 18 months ago, said it had identified 63 onerous leases out of 108, adding that the reshaping of its property portfolio, including lease terminations and reduced rents, would result in annualised cost savings of £5.2m.
“The company’s financial platform has very seriously been affected by the onerous leases,” she said.
Of the £18m fund raising, Alexon said £10m would be spent on reorganising its store estate and the remainder would be invested in its outdated IT systems. Ms McNally said that “no more than nine” stores would close in the next year. Of the 42 that will close, 15 are currently unoccupied.
She said that Alexon planned to open up to 25 stores over the next 12 months and as many as 50 new concessions.
- 1 Tidal launch: The most pretentious lines from Alicia Keys' valedictory speech
- 3 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 4 Tidal: Jay Z's Spotify rival streaming service criticised for making wealthy artists even richer
- 5 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
Negotiable: Recruitment Genius: This leading supplier of compliance software a...
£24000 - £30000 per annum: Recruitment Genius: The Associate System Engineer r...
Negotiable: Recruitment Genius: An Executive Assistant is required to join a l...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...