By Adriano Marchese
LXRandCo shares fell sharply Monday morning after the company warned that it could face liquidity issues in the fourth quarter as lower consumer-spending trends weigh on revenue.
At 9:35 a.m. ET, shares were trading 33% lower at 1 Canadian cent (1 cent).
The Canadian retailer of pre-owned luxury handbags and accessories blamed economic headwinds that has been pressuring consumers’s discretionary spending and which have led to lower-than-expected revenue in its upcoming third quarter.
Due to the lower revenue, LXRandCo said it may be in breach of certain banking covenants that would result in liquidity issues in its fourth quarter.
LXRandCo said it is in discussions with its bank lenders regarding possible alternatives to address the financial situation, but cautioned there could be no assurance of any particular outcome.
Write to Adriano Marchese at [email protected]
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