Montreal, June 17, 2020 – LXRandCo, Inc. (“LXRandCo” or the “Company”) (TSX: LXR, LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, today provided an update on the implications of the outbreak of the coronavirus (“COVID-19”) on its operations and the re-opening of its store network. Since the Company’s announcement on March 20, 2020, where in response to the COVID-19 outbreak, the Company announced that further to the decisions made by its retail partners that it too would temporarily close all its stores until further notice, a majority of the Company’s retail partners have since commenced store re-openings in select North American locations (albeit with reduced operating hours and staffing levels).
As a result, the Company also commenced the gradual re-opening of certain store locations in May under a streamlined and more efficient operating model. Currently, the Company has 22 (or 31%) of its total LXRandCo store locations in operation across Canada and the U.S. By the end of the second quarter, it expects to have approximately 37 (or 53%) of its retail network in operation.
In addition, as previously disclosed the Company has taken actions to improve its liquidity. On May 26, 2020, the Company reported that it completed a $3.6 million financing (later increased to $3.8 million) of which $3.0 million was in the form of a three-year term loan and $0.6 million (later increased to $0.8 million) through a private placement of LXRandCo Class B shares, in which certain of the Company’s directors also participated. Concurrent with the above, the Company also renewed its existing asset-backed lending facility, which was to mature in June 2020 for a three-year term
Given the uncertain economic environment, the Company’s strategy is to continue the gradual re-opening of its stores as its retail partners continue to do so and as consumer in-store traffic supports such plans with the goal of having 100% of its stores (70 stores) in operation by September 30, 2020. While this strategy is based on information available as of the present date, the Company believes that the uncertain effects of COVID-19 on its operations, retail partners’ operations and/or on consumer demand and buying patterns, particularly in a prolonged or recurring scenario, may alter the timing of store re openings.
LXRandCo is a North American 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 primarily in major department stores in the United States and Canada, wholesale operations primarily in the United States, and its own e-commerce website, www.lxrco.com, as well as the ecommerce platforms of its partners.
For further information: Nadine Eap, Interim Chief Financial Officer, LXRandCo, Inc., +1 (514) 564-9993 ext :037, email@example.com