– 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."
About LXRandCo
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.