Struggling Bossini issues another turnover and profit warning
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Troubled apparel retailer Bossini has issued another profit warning after reviewing 11 months of its trading year.
In a filing with the Hong Kong stock exchange, Bossini says it expects that the loss attributable to shareholders for the period to May 31 was between US$38 million and $42 million.
The company attributed the loss to the adverse impact of social unrest and the subsequent arrival of the Covid-19 pandemic along with impairment provisions on property, plant and equipment
Bossini reported a loss of $12 million during the six months to December – more than triple the $3.3 million loss of the same period a year earlier. Sales were down 20 percent to $90 million.
The company is subject to a takeover offer from a Chinese company controlled by retired Chinese athlete Li Ning, who plans to expand the business in Mainland China.
A venture called Viva China will buy 1.09 billion shares in Bossini, paying just $6 million for 66.6 percent of Bossini’s issued capital, effectively buying out the family interests of Bossini’s founder Law Ting-pong.
Questions & Answers
Q.What factors has Bossini stated are responsible for its recent financial losses?
What factors has Bossini stated are responsible for its recent financial losses?
Bossini attributes the expected loss to the adverse impact of social unrest and the subsequent Covid-19 pandemic. Impairment provisions on property, plant and equipment also contributed to the financial decline.
Q.How much has Bossini's loss increased in the six months to December compared to the previous year?
How much has Bossini's loss increased in the six months to December compared to the previous year?
The company's loss for the six months to December was $12 million. This represents more than triple the $3.3 million loss reported during the same period in the previous year.
Q.Who is behind the current takeover offer for Bossini and what are their intentions?
Who is behind the current takeover offer for Bossini and what are their intentions?
A Chinese company controlled by retired athlete Li Ning, via a venture called Viva China, is making the takeover offer. They plan to expand the Bossini business within Mainland China.
Q.How much will Viva China pay for the majority stake in Bossini?
How much will Viva China pay for the majority stake in Bossini?
Viva China will pay $6 million for 1.09 billion shares, which represents 66.6 percent of Bossini’s issued capital. This effectively buys out the founder's family interests.
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