Member Info for Peoplepower1

https://www.healthline.com/health/beauty-skin-care/does-makeup-expire

Some make up only have a shelf life of 3 months.

Of course they do. Colours in make up go out of fashion just like clothes. REVB sell mainly make up.

t4g - I haven't read that anywhere that Shein aren't allowed to sell their items in China because of the massive competitive advantage.

Have you got a link for this?

If anything, it was Trump who helped Shein to grow because Shein didn't have to pay any taxes in USA by sending items to customers direct.

I would say Shein are growing more and more when they're opening Distribution Centres in USA and Canada.

Beauty products go out of fashion too, just like clothes.

REVB have said they're hoping when the finalised accounts from FY2019 are released the banks will continue to support them. They don't actually know this until the accounts are released.

t4g, you are invested in REVB and so don't want to look at the negatives.

Yes t4g I have read all that however it doesn't stop people buying fast fashion from Shein.

I'm not aware of them getting government subsidies. I knwo they're not allowed to sell in China and this is how they get their clothes made in China.

In my opinion, Boohoo would have been huge if Shein hadn't come along and undercut Boohoo.

REVB are £20m in debt and have also drawn down £32m from a £40m revolving credit facility, leaving £8m. So far, REVB owe the banks £52m.

At 31 August 2021 REVB had £89.9m in inventories, which is about a year's inventory. How much do REVB have in inventories now? We'll only find out when the final accounts are released from FY2019 onwards. Will they have to write these investories off or sell them at a loss? No-one knows until the final accounts are released.

The final accounts from FY2019 have to be done again including the AIM admission document. I would think REVB have never made a profit and the updated, corrected accounts from FY2019 will determine whether or not the banks will continue to fund REVB or put REVB into administration.

Obviously putting REVB into administration would be best for Boohoo, so Boohoo could buy REVB cheap from administration and make REVB profitable.

REVB seemingly sell 76% through stores and 24% online so loads of opportunity for Boohoo to grow REVB online.

It looks like Shein from November 2022 do have distribution centres in USA and Canada.

Different reports on Chris Xu. Some say he's Chinese, a billionaire and runs the company from China.

https://www.theguardian.com/business/2022/jul/30/chris-xu-shein-mysterious-billionaire-founder-fast-fashion

https://www.forbes.com/profile/chris-xu/

Chris Xu founded Shein in 2012

Shein is owned by an American Chinese person who lives and runs Shein from America.

He gets everything made in China because he understands the Chinese system and speaks the langauage. He has everything posted from China direct to the customer, so no Distribution Centres and less overheads.

Shein has become the most downloaded application and the biggest seller of fast fashion in the world.

If Shein hadn't appeared on the fast fashion scene, then you can see how huge Boohoo could have become.

Shein gets everything made in China on the cheap and so is able to undercut Boohoo's prices.

The Administrators will try to get as much as possible however with Boohoo as a big shareholder then the Administrators can be sure that Boohoo will buy REVB out of administration and won't pull out of the deal.

Boohoo has £325m revolving credit facility so they've plenty of money to buy REVB out of administration. They'll want it on the cheap and won't be paying over the odds for it. I can't see THG going after REVB. THG are into more upmarket items.

It's obvious REVB have never made a profit so the banks will be looking at their £52m owed from REVB to them. When the final accounts are done from FY2019 then the banks will consider whether or not it's worth putting more money in when REVB aren't making a profit. Or the banks will think let's get out quick and put REVB into administration so at least we get something back.

I understand holders of REVB don't want to even consider this, however, to buy shares in a company which is under investigation is a huge risk and you can end up with nothing.

Facts are facts regardless of any so called agenda. You may not want to see them nor believe them.

REVB already have £20m debt and have also drawn down £32m from a £40m revolving credit facility. This leaves £8m. The Banks will be reluctant to provide any more money until they see the final accounts from FY2019.

REVB have at least a year's inventory of items at a cost price of £89.9m. This may need to be sold at a loss or written down.

You don't know whether or not REVB are going into administration.

They do have priority with the administrators because they're already shareholders. Administrators look favourably on bidders who are already shareholders. Hence Boohoo's investment in REVB.

It looks to me like REVB have never been profitable and the final accounts from FY2019 onwards will prove this.

No, they wouldn't. The £10m will be got back after buying REVB on the cheap and making REVB profitable.

It might cost them another £10m to buy REVB out of administration so in total £20m. Again Boohoo can get this back by making REVB profitable.

Hosai- Boohoo would lose nothing because they would buy REVB cheap. Boohoo have spent about £10m on REVB shares. £10m is a small amount to pay to get REVB cheap from administration.

It will all depend on the banks. If the banks don't like what they see in the final accounts, then they may well choose not to back REVB.

The accounts have to be done again from FY2019 including the AIM admission document so heaven knows how they'll end up.

£89.9m of inventories at cost price for 31 August 2021 for REVB is a full year's inventory. Will this have to be written off or sold at a loss?

I think REVB would only be a good buy for Boohoo if they go into administration. REVB supposedly sell 76% through stores and 24% online. I could be wrong.

REVB have £20m debt and have drawn down £32m from a £40m revolving credit facility. REVB's accounts have to be corrected from fy2019 including the AIM admission document so depends on what comes out of all this as to whether or not the banks will continue to back REVB.

Plus REVB had £89.9m on their inventories at cost price for August 2021. £89.9m represented a full year's inventory for REVB and should have been a red flag to investors. All investors in any companies need to check the balance sheets to protect their capital.

If you look at ASOS' Balance Sheet for 28 February 2022. Their inventories was £986m at cost price at 28 February 2022 which was about 6 months of inventory. Probably why ASOS needed to write down £130m of their inventory.