– Company Anticipates No Material Financial Impact –
MONTREAL, April 20, 2018 /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR, LXR.WT), an international omni-channel retailer of branded vintage luxury handbags and accessories, today commented on the bankruptcy proceedings and wind-down of operations of The Bon-Ton Stores, Inc. ("Bon-Ton"), which is expected to result in the closure of all Bon-Ton stores. LXRandCo currently has "shop-in-shop" locations at 14 Bon-Ton stores, located primarily in the greater Chicago and Milwaukee areas. As per the terms of its partnership agreement with Bon-Ton, LXRandCo has legal ownership title to all of the inventory and store fixtures at its "shop-in-shop" locations within Bon-Ton stores and LXRandCo expects to reclaim all such inventory and fixtures in an orderly manner over the ensuing weeks. In addition, all sales personnel at the affected LXRandCo locations are employees of Bon-Ton and will follow the appropriate procedures under the wind-down of the Bon-Ton operations. As such, LXRandCo anticipates no material financial impact from the closing of the 14 Bon-Ton stores with LXRandCo locations.
"While we are disappointed with the outcome of the Bon-Ton bankruptcy proceedings, we are confident that we can redeploy the inventory and fixtures from these stores to new locations as we continue to service both our existing U.S. retail network and potential new partners alike," said Fred Mannella, Vice Chairman and Chief Development Officer, LXRandCo.
Steven Goldsmith, LXRandCo's incoming President and Chief Executive Officer, added, "Despite the loss of a valued retail partner, LXRandCo's unique vintage "shop-in-shop" model remains a compelling value proposition for retailers and consumers, and we will continue to evolve the business model to more efficiently capitalize on the opportunities ahead. One of my first priorities upon assuming my role will be to work with the team to review our operations and map out the evolution of LXRandCo's omnichannel strategy, including revaluating the anticipated growth plans for our retail network absent the opportunities from the Bon-Ton partnership, and with a specific focus on disciplined growth, while increasing margins and profitability."
LXRandCo is a rapidly growing, international omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through: a retail network of stores located in major department stores in Canada, the United States and Europe; wholesale operations primarily in the United States; and its own e-Commerce website, www.lxrco.com.
Caution Regarding Forward-Looking Statements
Certain statements in this press release are prospective in nature and constitute forward-looking information and/or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "could", "would", "will", "expect", "intend", "estimate", "forecasts", "project", "seek", "anticipate", "believes", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events and the negative of any of these terms. Forward-looking statements in this news release include, but are not limited to, statements concerning future objectives and strategies to achieve those objectives, including, without limitation, store openings, as well as other statements with respect to management's beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, outlook, circumstances, performance or expectations that are not historical facts. Forward-looking statements reflect management's current beliefs, expectations and assumptions and are based on information currently available to management, which includes assumptions about continued revenues based on historical past performance, management's historical experience, perception of trends and current business conditions, expected future developments and other factors which management considers appropriate. With respect to the forward-looking statements included in this press release, management has made certain assumptions with respect to, among other things, the Company's ability to meet its future objectives and strategies, the Company's ability to achieve its future projects and plans and that such projects and plans will proceed as anticipated, the expected growth of the Company's e-Commerce revenue, the expected number and timing of store openings in North America and internationally, entering into new and/or expanded retail partnerships in North America and internationally, the Company's ability to source products, the Company's competitive position in the vintage luxury industry, and beliefs and intentions regarding the ownership of material trademarks and domain names used in connection with the marketing, distribution and sale of the Company's products as well as assumptions concerning general economic and market growth rates, currency exchange and interest rates and competitive intensity.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
All forward-looking statements included in and incorporated into this press release are qualified by these cautionary statements. Unless otherwise indicated, the forward-looking statements contained herein are made as of the date of this press release, and except as required by applicable law, the Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Readers are cautioned that the actual results achieved will vary from the information provided herein and that such variations may be material. Consequently, there are no representations by LXRandCo that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.
SOURCE LXRandCo, Inc.
For further information: Audrey Lara, Chief Financial Officer, LXRandCo, Inc., +1 (514) 718-9541, [email protected]; Lawrence Chamberlain, Investor Relations, LodeRock Advisors, +1 (416) 519-4196, [email protected]