Why Did Vince Postpone The Release Of Data In 2016? Can'T Escape The Fate Of Bankruptcy?

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Brand Vince Holding Corp. announced the need to postpone the fourth quarter of fiscal year 2016 and the release of financial data for the whole year, so that the market is worried that the current US retailers are going bankrupt and selling off.

The fate of the group under the difficult business environment.

The share price of Vince Holding Corp. (NYSE:VNCE) was nearly 30% on Monday, 17, and the cumulative decline in 2017 has widened to 3/4. Following the announcement of the co founder's departure in February this year, he continued to explore the new low.

Vince Holding Corp. said it had informed the US Securities Regulatory Commission SEC that the final deadline for submission of the 10-K quarterly report and the annual report as of January 28, 2017 was postponed to April 28th, and pointed out that the pition process after the stripping of Kellwood Company LLC from the former parent company and the integration of the new ERP ERP system with the intra group business and the third party system all contributed to the late arrival of the financial report, and the above factors would substantially weaken internal control from one or more aspects.

Group chief executive Brendan Hoffman pointed out that they had difficulty in integrating the IT system from the Kellwood Company LLC platform to the integration process, and found some problems in these systems. At present, the group has been correcting the defects, which is expected to be completed in the current fiscal year 2017. Before completion, the group will continue to carry out additional due diligence on quarterly results to ensure accuracy.

In addition, Vince Holding Corp. Corp. expects that the impairment loss of goodwill and business and the 1 million 700 thousand dollar equity investment in the Affiliated Companies will further affect the performance. However, the group will still make use of the existing US $20 million cash as an additional equity investment, which has also been used as collateral for Bank of America Merrill Lynch Merrill Lynch loan. Brendan Hoffman believes that the improvement of borrowing capability will help the group improve its operational efficiency.

At the same time, the group said that management is continuing to assess any factors that may threaten the continued operation of a year, including the trend of the retail business environment, and the difficult retail environment may cause financial agreements to fail.

Even so, "we have been doing a lot of work to re brand", Brendan Hoffman points out that he believes that the group is taking the right strategy to optimize wholesale business and expand directly to consumer business and international business.

At the end of 2015, after the strong turbulence of poor performance and the resignation of three top executives, Vince Holding Corp. recalled the brand founder Rea Laccone and Christopher LaPolice to help them manage Vince's brand products, sales and creativity.

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However, influenced by the depression of the US entity retail industry, the improvement of product supply by founder's return failed to benefit the department store as the main sales channel.

In mid February of this year, the group said it had decided to terminate the 2 year consultancy agreement with Rea Laccone and Christopher LaPolice LaPolice in 7 months ahead of the date, resulting in a sharp fall of 22% in the same day.

At that time, Brendan Hoffman said that the return of Rea Laccone and Christopher LaPolice basically reached the goal of resetting the brand, though it was not reflected in the performance.

In the three quarter, Vince Holding Corp. was not only dragged down by the big environment, but also the warm autumn weather was not conducive to the sale of autumn winter clothing. Therefore, the net sales fell by 6% to 75 million 973 thousand US dollars in the same period, which was worse than the US $82 million expected by the market, but the decline has narrowed considerably compared with 24.1% in the two quarter.

Wholesale sales decreased by 9.4% to 51 million 200 thousand US dollars a year, mainly because the group continued to reduce the discount orders in a planned way. Sales directly to consumer business dropped slightly from 1.6% to 24 million 800 thousand dollars, including 11.7% of comparable sales of e-commerce.

However, due to weaker performance than expected in the most important holiday season of the year, the group had to cut its annual performance expectations again.

Now, the Group expects that sales and EPS will be lowered at or below the expected interval after the three quarter earnings announcement in December 8th.

The annual sales target is 2.80-2.90 billion, with a market expectation of US $301 million 800 thousand, and EPS's expected range of US $-0.07-0.00, which is far below the market forecast of US $0.33.

As of the end of January, the Vince brand has 2400 sales outlets in 40 countries, including Neiman Marcus, Nordstrom, Saks Fifth Avenue and Bloomingdale "s" and other luxury department stores. The brand also set up 40 stores and 14 factory shops, and also sold on the official website.

Rea Laccone and Christopher LaPolice sold the Kellwood Co. LLC of the Vince in 2002 to the listed company's Co. LLC at that time. The value of the paction was undisclosed, and the industry gave a valuation of $35 million.

In 2008, Kellwood Co. LLC was purchased and privatized by private equity fund Sun Capital Partners Inc. for $762 million, when Vince's market value rose to $250 million.

The two group left the group for the first time in January 2013 when Vince Holding Corp. was preparing to hit the market.

My Michelle, Rewind, Democracy, XOXO, JAX, and Sangria and many other clothing brands Kellwood Co. LLC were sold to a Hongkong consortium in December 2016.

At the time of the deadline, Vince Holding Corp. (NYSE:VNCE) ended at $1.02, narrowing to 21.15% and less than 51 million US dollars.

The stock was listed at $20 a share in November 2013, raising $200 million, and its market value has evaporated to 95% so far.

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