VINCE TO DELAY ANNUAL REPORT, DISCLOSES IT MAY DEFAULT
Luxury apparel and accessories brand Vince Holding Corp. has announced that it is delaying the release of its financial results for the fourth quarter and fiscal year ended January 28, 2017. As such, the company has filed a Notification of Late Filing for its Annual Report with the Securities and Exchange Commission, extending the deadline to file its report on or before April 28, 2017.
The company says that the extension is “necessary due to unanticipated delays in compiling financial reports and other data that are necessary in preparing and completing the financial statements. These delays are related to the transition from Kellwood, the company’s former parent company, and the integration of the company’s new ERP system with its internal business processes and third-party systems, as well as additional procedures and processes that the company is undertaking to ensure that its financial statements are fairly and accurately presented.”
Also addressed by the company is a slight hint that it may default on its assets. The company said that “management is assessing whether there are conditions or events that raise substantial doubt about the company’s ability to continue as a going concern within one year after its financial statements are issued.”
The company goes on to reference the current trends in retail business and the future volatile nature of the industry as its reasons for concern.
“We completed a side letter with Bank of America that increases our borrowing flexibility, allowing us to operate our business more efficiently,” said Brendan Hoffman, chief executive officer. “However, in light of the difficult retail environment we believe that it is prudent to consider a scenario in which we do not meet our financial covenants. That said, we have done a lot of work to reset the brand and believe that we are taking the right strategic steps to optimize our wholesale business, expand our direct-to-consumer business and grow our international presence.”
