XXL’s sweaty summer continues. In this latest chapter of the never-ending retail drama, the retailer leaves the Oslo stock exchange.
Frasers Group has decided to carry out a compulsory redemption of the remaining shares in XXL that it does not control. In so doing the new owner can begin delisting XXL from the Oslo Stock Exchange.
The compulsory redemption began on Tuesday, July 2, after Frasers decided at an extraordinary general meeting on Monday evening that the compulsory redemption would be initiated. Frasers Group is compulsorily redeeming all XXL shares for NOK 10 (€0.84) per share.
When XXL was listed on the stock exchange in 2014, the price was NOK 58 (€4.88) per share.
Frasers Group has not announced the reason for the delisting, but there are several possible reasons. One is to quickly save money, as a listing is costly. Another is to enable a new owner to gain better control over its acquired company. Frasers became XXL’s majority owner in June of this year.
More crisis measures: Appeal letter to suppliers, Sports Direct takes over loans
XXL is bleeding money and has been doing so for a long time. Now the company has also taken a less flattering measure towards its suppliers. Norwegian newspaper Finanasavisen reported yesterday that XXL has sent letters to its suppliers asking for a respite on their invoices, because it simply lacks the liquid funds to pay them at the moment.
Frasers Group seems to have a short-term plan to avoid bankruptcy by letting the successful Sports Direct chain take over XXL’s debts.
In a press release published on Sunday, June 29, XXL announced that the company’s lenders had entered into an agreement on Saturday evening and that XXL’s loans had in fact been taken over by the Frasers Group subsidiary.
