Member Info for FED1

I read in the annual report that the Rolling Credit Facility had covenants related to interest cover and adjusted leverage.

I was wondering that as part of the "credible plan", did it first need pay down the RCF so that it could restructure the business (i.e., split it in two)?

Pure speculation but maybe the office sale and debt paydown is a precursor before implementing the "credible plan"?

Thank you Cooler for relaying what happened in meeting. Your posts were very insightful and appreciated!

Bfd - you could also ask how did Kamani get so much considering the 90% drop in share price?

Hexam - maybe the margin opportunity for Debs is credit. Have a Wayfair marketplace which admittedly has razor margins, but apply the Very Group Strategy?

Alternatively, if Debs does decide to become an conventional etailer (ie own the inventory it sells), then maybe getting market share is first stage?

There are probably a few quick wins to unlocking value. Namely the office sale and lease back although this hs been previously discussed and is actually cash flow neutral. And maybe signing a few global franchise agreements for Karen Millen.

I have questions for those who attended:

1) Did they say whether Group would return to positive revenue growth this year? Or give any indication as to performance since September?

2) Did they give any clues to credible plan? How they will unlock value?

If you look at previous AGMs, most resolutions are blithely passed with 99% management recommendation.

Although BoD is not majority independent, I suspect ISS and Glass Lewis will recommend voting against second EGM.

Today I realised there is no such thing as shareholder activism. ESG is simply some overpaid woke employee at an institution asking about labour rights for its Bangladeshi suppliers.

Considering Camelot is on BoD at ASOS, he may actually know a lot more on Frasers intentions.

Boo would have met Schroders and Camelot. As would Mike Ashley.

BOO would have asked if they want to be made insiders (meaning they can’t sell or buy for period until event passed). If they accepted, BOO can tell them credible plan.

Maybe it is actually credible?

When I worked in asset mgmt, the investment team decided. I suspect proxy voting has been given over to ESG specialists who have no skin in the game.

Bfd - I agree that this was a resounding no to Frasers.

I’m surprised really given the awful share price performance. That’s why I didn’t back BoD. My get out/reduce is low 50s which probably makes me relatively lucky.

“Our new CEO”

Do you work for him?

At least they didn’t say “credible plan” in RNS.

I do not see a Fraser’s bid as likely given the scale of defeat. Problem is, no one can bid for it.

Only option to spin off Debs and Karen Millen. I assume that is what he means by unlocking value?

Jeremy - What did they talk about for 2hrs?

If BoD do win, they be wise to acknowledge frustration of shareholders. Regardless of outcome, it is not a landslide endorsement from minorities (ex Fraser’s) of current leadership.

Correction: I meant “credible plan”, not credible plan.

If Schroders and Camelot have voted with BoD, then they may be insiders on Credible Plan. It was enough to tip balance in BoD favour.

Looking for silver linings!

Https://www.cityam.com/sfo-s-tip-service-nets-no-investigations/

I probably wouldn’t waste my time pawing through the notes on the annual accounts, unlikely to be picked up.

I currently have a client case going through FOS for a high risk unlisted equity investment. The prospectus which was approved by FCA is ridiculously optimistic. It was literally a Ponzi scheme to raise funds to redeem insider preferred shares. We are going for the law firm that approved the financial promotions on a technicality in sales process.

I probably shouldn’t wade into this debate:

1) ultimately the question is whether Boo paid a fair market price for PLT given fundamentals at the time; not whether PLT is now worth a fraction of its current worth;

2) if you have “credible” information to suggest that the market price paid was exorbitant, the the Serious Fraud Office can request Board meeting minutes and the third party reports. I have only skimmed but I think you haven’t met that threshold yet for SFO to open probe.

Although I agree the recent price action is concerning, and that market sensitive information leaks out, which could imply status quo…..

I do think there is a chance of Fraser’s winning this. I think retail is probably voting in favour of Frasers but this won’t be enough to pass it. However, it would seem Camelot have more of a beneficial interest in working with Frasers. That could tip balance hopefully for change.