Naked Wines, the online wine retailer listed in London, has taken a strategic step by engaging debt advisers to explore potential refinancing solutions in response to challenging market conditions.
Interpath Advisory has been enlisted by Naked Wines to assist the company during this period of uncertainty, as investor confidence has waned significantly in recent months.
Over the past year, Naked Wines has experienced a notable decline in share value, with shares plummeting by nearly a third. This downturn has resulted in a market capitalization of less than £50 million, although there has been a slight recovery from the lowest point recorded, which was less than 30p per share.
In a move to bolster its leadership, Naked Wines recently appointed Rodrigo Maza as the new Group CEO, succeeding Nick Devlin. Devlin’s tenure was marked by challenges in the company’s US operations.
Under the new leadership structure, Maza reports directly to the company’s founder and chairman, Rowan Gormley.
A company spokesperson commented on the decision, stating: “We are considering options to replace our existing credit facility. Having sought expert advice on the current debt market and considering the strength of the balance sheet, we believe there may be an opportunity to secure a similar-sized facility with fewer limitations on utilization and more flexible covenants, resulting in fewer restrictions on our ability to reduce inventory and drive our broader change agenda.”
Naked Wines, operating in multiple markets including Australia, collaborates with numerous independent winemakers and boasts nearly 1 million customers.
