REMINDER: Our user survey closes TODAY, please submit your responses here.
There were new regulations introduced in April 2021 for Pre-pack admins related to connected parties. So there has been concern around this in the past with an attempt to address with new regulations. It hasn't been uncommon for companies to enter into a pre pack, and directors set up a new business which buys the assets in the pre pack deal. I think any concerns around pre packs are fair (I have my own concerns), although the regulations have been introduced for a reason.
REVB is doing well now and long may that continue.
https://globalrestructuringreview.com/guide/the-art-of-the-pre-pack/edition-2/article/legislative-developments-the-new-pre-pack-regulations
Technically Boohoo gaining control of the board means they could, possibly, breach the banking covenants and force the company into a distressed state, and then negotiate a pre-pack deal, which would be done with the board members before it is placed into admin. Once in admin whatever has been agreed could take immediate effect. Which with a Boohoo friendly board that could mean Boohoo buy the assets etc. cheap. There are many scenarios that could play out here and prepack admin is one.
Debenhams was different to Revolution in that they were a very distressed business heading towards admin. If Ashley had got control things I feel he would have gone down the prepack route. Debenhams would have probably been better off than in Boohoos hands!
Disagree. Mike Ashley also tried a boardroom coup at Debenhams and failed, then it fell into admin and he was in the same boat as everyone else. If Boohoo directors are installed onto the board then either prepack admin is on the cards, or Boohoo submitting a low ball offer which would be accepted. Holt has called Boohoo management out with plausible scenario's and they clearly don't like it! Boohoo also haven't responded to Revolution's request to state their intentions should they gain board control, which speaks volumes.
It will be interesting to see an RNS tomorrow. REVB was approved to relist on AIM so they must not have seen any issues.
Maybe this is BOO distracting from their own bad PR, as a UK fashion brand has now launched a copyright claim against them.
It will be interesting to see how the board can fight this hostile approach off, if possible.
Https://news.sky.com/story/boohoo-takes-revolution-row-to-junior-market-regulator-12917822
Didn't Boohoo vote for the accounts which contained info on share awards? Also, the reference in Boos RNS about it being hidden in 5 sentences. Not exactly hidden when its printed for all to see!
Excellent new re. lifting of suspension.
If I were any customer, supplier or had any dealings with Boo, I would be watching very carefully as to the ways they go about conducting business, shocking behaviour and the RNS today is quite frankly a joke.