E-tailer looks to divest assets amid litigation waves
Embattled online sport clothing retailer Surfstitch is looking at selling some of its assets amid financial pressures from legal proceedings, an ASIC investigation and separate class actions.
Surfstich says it is exploring the option of selling media assets and other asset sales as it faces litigation from Crown Financial group, separate class actions in the Queensland and NSW supreme courts and a continuing ASIC investigation – all of which are expected to impact its cash position.
“The company is working steadily to stem losses within the business, improve the key underlying retail business operations and deal with the litigation challenges in an orderly fashion,” the retailer said in a statement on Thursday.
“The cost and disruption of the Crown Financial litigation, the Queensland and NSW Actions and the ASIC investigation continue to affect the listed entity and impact its cash position.
“This does not prevent the ability of the key underlying retail businesses to trade and remain viable. However, the position of the SRF group is being closely monitored.”
The surfwear retailer also recommended shareholders vote against removing company chairman, Sam Weiss, as a director of its board.
“The board [with Weiss abstaining] is of the view that the removal of Sam Weiss from the board is not in the best interests of the company and therefore does not support this item of business requisitioned by Crown Financial.”
This story first appeared on our sister site, Inside Retail Australia.