PYX Resources: Achieving volume and diversification milestones. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Putneylad, If you trust the RNS's released from Koovs management then you need to trust what is written there.
Below is the extract of it.
"FLFL has confirmed to the Company that it is in the process of reapplying for approval of the investment from the Reserve Bank of India and that it remains committed to honouring the investment."
For me I just read it and I don't take this seriously.
I am happy that FLFL is in a better position financially now after Blackstones investment and Amazons investment progression ( the speed braker was remeoved now). Looks likely that it could be good for us.
Sitting tight like everyone here. I know this is the most frustrating times. I just have to sit calm and see where the share price heads to before chrismas week.
The problem Tom is that there is no transparency from both sides, so we are trying to fill the gaps.
It has been seven weeks since FLFL told KOOVS that they had to reapply.
It is totally unacceptable leaving shareholders in the dark.
Have FLFL even reapplied?
I would have thought it almost inconceivable that they didn't agree on an overall business plan with specific operational objectives before Biyani agreed to make the investment. The problem is that the structure of the funding , with HT Media etc. is such that it is not allowing them line of sight to profitability. The need a comprehensive funding solution not a band aid.
same will happen again.
Alli will put up some cash.
sp will move up to over 10p
very very fast. PI's will be
unable to buy. To triple your
money in two weeks you have
to be in now at 3.4p.
Many other fashion retailers have
been at this juncture before.
Next in the 80's and ASOS in it's
infancy. Get in and hold for the
recovery.
Tom, do you think that FLFL set Koovs certain conditions before completing the funding, ie a drop in losses, increase in margins? Or am I just being paranoid.
Its just that I've seen very little in the last 18 months regarding this tie up. Just three concessions thus far is a little odd.
I think Black Diamond makes some very good points, especially with regard to the current cash burn rate. Biyani , by his own admission, doesn't understand the online sector as well as he would like to but he is nobody's fool and he is smart enough to recognise the seriousness of the threat. The question he is probably trying to answer is how quickly the transition will take place. Many of us here have seen, and benefited, from the rapid rise in the likes of ASOS and Boohoo and we know just how quickly these types of businesses can grow once they are established. Operating costs and consumer spending power are very different in India so a sustainable model still has to be proven. But with Wal Mart and Amazon vying for the Indian market he needs to learn fast, that is where Alli, Amin and Turner can add a lot of value and experience.
Remember that Future Groups Brand factory have paid £1 million to use Koovs technology
https://www.newindianexpress.com/business/2019/dec/04/at-brand-factorys-annual-shopping-festival-pay-fee-to-shop-free-2071067.html
Biyani had earlier said he expects online sales of around Rs 1,000 crore this financial year. “We are investing in the online business and trying to understand the space again after we have lost money in Fab Furnish and had to shut operations,”
Imagine what an idiot Biyani would look if he let this collapse after screwing up with Fab Furnish.
His e commerce dream will be totally destroyed!!!
Last year, a small loan from Alli started the ball rolling with the share price moving from 5p to 28P!!!!
When funding news drops here you will not see the sp for dust. Even a £3m bridging loan from Lord Alli will send this skywards.
The Koovs rns's are factual & written in conjunction with legal advisors & Strand Hanson. There are strict regulations here in the UK about what is written in rns's.
So when a deadline is given, that will be in conjunction with Biyani/ FLFL!
Biyani/ FLFL reneged on the first deal when they were supposed to complete the funding within 6 months of the equity raise.
Biyani/FLFL once again reneged on the second deal, by stalling the funding..
After 7 weeks he has still not reapplied to RBI thus making Koovs run out of money.
Because of his stupidity, he has lost FLFL £9 MILLION out of their £10 MILLION investment- top man!!
Unlike you, I have met Koovs management three times & am in a position to judge them.
My views about Biyani are pretty tame compared to the many large shareholders I have spoken to. They don't trust him either.
Obviously I would love to be proved wrong & Biyani stumps up the money he owes Koovs. But I don't believe he wants to pay 28.36p per share.
If Biyani had any morals, integrity or honesty, he would pay up. I don't believe that he has any of those qualities, so Koovs will have to look elsewhere.
If I'm proved wrong, when next in India, I will buy you a drink!
Putneylad, You are reading in between the lines of the RNS that was written by Koovs management, Mary Turner and Robert Pursell who you don't trust most of the time, but trust them becasue of listening to their stories in the AGM or other meetings.
In contrast to you I don't read in between the lines of RNS from Koovs. Instead I get the message from Koovs RNS and then go to Future retails Investor presentation as well their notification to SEBI. I believe and continue to believe in what is written in FLFL investor presentation. What has happened to the deal in a closed doors is not visible to me or you or most of them here.
One good attitute from Mary Turner is that she waived off most part of her salary for the last 2-3 years when the company was struggling.
Koovs Investors DO NOT TRUST HIM or Putneylad DOES NOT TRUST HIM. I have to tell that you don't represent all the investors here. Everyone has a different view.
I don't expect someone in this board to set the expectations for all the Koovs investors. Though I respect everyones views and take a balanced approach.
Exactly!
Nice clothes too..im sure will do well in India.
British fast fashion outfit Missguided have re entered India via Koovs & today have increased their range by 50% going from 42 products to 64!!
Not the sign of a company about to go under!!
https://www.koovs.com/women/brand/missguided/
https://www.instagram.com/nitinpassi/
https://en.wikipedia.org/wiki/Nitin_Passi
Worth £250 million!!!
Black Diamond "I have invested in Kishore Biyani's companies. He is man of his words. People trust him. The problem here is with Koovs management."
With all due respect, Kishore Biyani is NOT a man of his word. Koovs Investors DO NOT TRUST HIM.
The following proves that he is a liar.
“In addition, as announced on 4 July 2018, FLFL has conditionally agreed to make additional investments to take its ownership up to 29.9% within six months of completion of the equity raise which was launched on 4 July 2018.”
FLFL have clearly NOT fulfilled their side of the legally binding deal.
They have dithered, stalled & missed the March 27th deadline that was given in writing to shareholders.
Because of this, I do NOT trust them.
Kishore Biyani & FLFL are liars who broke the terms of a legally binding document. Koovs just pandered to them because they are weak.
FLFL now have the luxury of hiding behind the RBI ruling regarding 'round tripping'
At this late stage, Koovs needs a new partner that can find funds from outside of India.
we may get an update from the company, regarding funding this morning, best wishes everyone.
I was under the impression that Koovs have a binding agreement with FLFL so when the RBI decide to allow the investment
the sp should rise back to the 15p level.
Thanks both...BD and putneylad. Very good posts..esp putneylad for the new info. Your very knowledgeable on Koovs and always worth reading..even if I dont always agree with everything you say, everyone should appreciate your input here.
Not sure wether its Biyani messing us about or still problems with RBI but it will become clear soon enough. I think it would be bad business and bad for his reputation to renege on the deal so could still happen but even if it doesnt, Baron Alli, a very successful and wealthy politician, businessman and entrepreneur isnt going to take it lying down. As ive said before, this is his baby and he wont let it fail, just as its starting to find its feet.
Thats what im banking on here.
He will find a way to make this a success, just like the other companies he is/was involved in, including...Asos no less.
If the FLFL deal doesnt come off its no big problem to him. If theres a white knight waiting to charge in and rescue us..thats great but either way , Alli will find a way to make this company a big success...its just a matter of how it happens.
All in my humble opinion DYOR.
I have invested in Kishore Biyani's companies. He is man of his words. People trust him. The problem here is with Koovs management. I think no one will accept the cash burn rate of Koovs except Amazon.
Ideally Kishore Biyanis strategy will generate wealth for long term investors and not for short terms. IMO Kishore biyani has too much expansion plans on other business as well. And he was in short of cash. Hence he put a token money of 250K at 28p placing. This will hold Koovs from looking for alternative investors. He may have thought that in the worst case if Koovs goes bust he can buy the whole company with 28p per share. But I dont' think that was the interest of Kishore Biyani. It was just a mutual benefit for both an year ago. In return he expected to get some inputs from Koovs for his desire on online retailing which he got it now. And THATS IT. No more strings attached IMO.
IMO Christian Westphal doesn't stick to any company for long time. He seems to be jumping like a frog so frequently.
Look at his linkedin profile. Indian companies for some reasons have foreigners in top positions to get exposure and contacts of foreign companies for expansion. I really don't think he makes any difference for Koovs.
https://www.linkedin.com/in/christian-westphal-41a6442
I think we need to rule out the option of Aditya Birla Fashion & Retail or Reliance trends investments in Koov's as they are competitors of Future retail (Brand Factory owners). I have bought loads of dresses from all these three fashion retailers. They got enough brands. As well Indian Consumers got enough foreign brands and most of them prefer american brands for western styles. Its like too much options given to the Indian consumers now.
What is really interesting going forward is the business relationship between
AMAZON = FLFL = KOOVS
Amazon is the only one who has enough appetite for the cash burn of Koovs.
I am not sure if I am bold enough to buy now. But I am really scared to sell on any raise. After Amazons entry I don't think that this company can go bust.
WAIT and WATCH.
Koovs have given Kishore Biyani all year to provide funds. He is lying & not committed.
They should have paid their dues (15p per share) by March 27th, but Koovs have kept covering up for them.
Koovs have given them long enough
Koovs need a new partner.
Mukesh Ambani & Reliance Retail Ltd?
Christian Westphal the new Chief Operating Officer worked for Aditya Birla Group, owners of @AJIOLife
Strange how Christian Westphal suddenly appeared on the scene at the same time that Future Retail & Kishore Biyani started ****ing about.
I’m going to stick my neck out & say that he could be the middle man between Koovs & Aditya Birla Group who absolutely dwarf Future Group
https://www.adityabirla.com/
ABFRL is a part of USD 48.3 billion Aditya Birla Group. With revenue of Rs8,118 cr. spanning retail space of 7.5 million sq.ft. (as on March 31, 2019), it is India's first billion-dollar pure-play fashion powerhouse with an elegant bouquet of leading fashion brands and retail formats
As a fashion conglomerate, ABFRL has a strong network of 2,714 brand stores across 750 cities in the country. It is present across 18000+ multi-brand outlets and 5000+ point of sales in department stores across India.
With Future Retail owning 25% of Koovs, it would have to be a cash offer for all the shares to but out Future Retail who have an average of 10p.
That’ll be £40 Million for the 400 Million shares & another £8 Million odd for Alli’s loan.
Aditya Birla Fashion are looking to add more private labels!
AGREE 100% NEWS COULD COME ANY DAY , AND THAT WOULD BE POSITIVE ME THINK.
Use your heads now all. Why would a company like Missguided recently agree to a commercial deal with Koovs to sell its merchandise on its website if Koovs was going to the wall!? No chance! The commercial agreement wouldn't be drawn up to cover a period of just a few weeks either, as there would be zero point to doing so. Wake up all news must be around the corner of positive funding
What?
Been out most of today and definitely did not see this coming our way... yikes
JOEHIGASHI, get back to the bird cage, we are worried about you
Alli has a net worth of c£200m.
He will not let Koovs fail now
that after a run of bad luck things
are turning around. Why give it away to
Private Equity when you have the funds
yourself.