Naked Brand Group (NAKD) provides update on artificial intelligence E-Commerce Platform

Naked Brand Group Limited (NASDAQ: NAKD) a world pioneer in intimate clothing, has strengthened its balance sheet by completing a series of strategic capital financings totaling $270 million in cash and the termination of all previous debt servicing obligations. In late February, the Company resumed compliance with Nasdaq listing criteria, and it is in the final stages of obtaining regulatory clearance and planning to secure shareholder approval for the previously planned divestiture of its brick-and-mortar activities.

The divestiture of Naked’s Bendon brick-and-mortar operations is expected to be completed in the second calendar quarter of 2021, enabling the Company to focus solely on its anticipated accelerated expansion of its e-commerce market. The Organization will be able to use its name and platform to create proprietary technologies to address the demands of customers in today’s modern landscape as part of its digital transformation.

“This additional capital will further transform our balance sheet, and now with over $270 million in cash and no debt we are strategically positioned to pursue accretive acquisitions of high growth and cash flow positive businesses, Our strong balance sheet further solidifies the opportunity to be a conduit for industry consolidation as we seek to invest in next generation technology that will enable our customers to access and experience the best brands using world class technology solutions.”

CEO Justin Davis-Rice

Naked has realigned its leadership team to complement this e-commerce transition, as previously reported, with the re-appointment of Mr. Davis-Rice as CEO and the appointment of Simon Tripp, a veteran investment banker and M&A executive, to the Board of Directors to assist in the development of the e-commerce site. Mr. Tripp has over 30 years of experience in a variety of corporate, capital management, and investment banking roles, leading both public and private businesses in a variety of industries.

“This is a very exciting time for e-commerce as the COVID-19 pandemic has brought forward a complete ‘digital first’ environment across all brick-and-mortar consumer outlets, The acquisition environment is rich with opportunity at attractive valuations and we have already begun working with Justin and his team to identify potential opportunities. Naked is focused on innovative technology offerings, including a best-in-class personalized shopping experience utilizing A.I. and other technologies that will uniquely position it as a disruptive player in online intimate apparel.”

Mr. Tripp

Naked signed a letter of intent to sell Bendon’s brick-and-mortar operations to a consortium managed by Justin Davis-Rice, the Company’s Executive Chairman and Chief Executive Officer, and Anna Johnson, Bendon’s Chief Executive Officer, as previously announced. However, since the parties have not reached a binding understanding, Naked cannot promise that the divestiture will be concluded on the previously disclosed terms, or at all. Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable, and Enjoyment State labels will be included in the divestiture of the Bendon brick-and-mortar operations.