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MONTREAL, Oct. 2, 2023
/CNW/ - LXRandCo, Inc. ("LXR" or the
"Company") (TSX: LXR), a digital-first omni-channel
retailer of authenticated pre-owned luxury handbags and
accessories, announced today that as a result of its previously
publicly disclosed effects of a weakening economy and
the negative impact on its higher AOV discretionary consumer
products and other factors, it has generated significantly lower
revenues in the third quarter than anticipated, which may result in
a breach of certain banking covenants, which would in turn result
in liquidity issues in its fourth quarter. The Company is in
discussion with its bank lenders regarding possible alternatives to
address its financial situation.
These discussions are ongoing and there can be no assurance,
what form, if any, these alternatives, will take. The Company does
not currently intend to disclose further developments with respect
to these discussions until they further crystallize or terminate or
unless required by law.
About LXR
LXRandCo is a socially responsible, digital-first omni-channel
retailer of authenticated pre-owned luxury handbags and personal
accessories. Since 2010, we have been providing consumers with
authenticated branded luxury products by promoting their reuse and
providing an environmentally responsible way for consumers to
purchase luxury products. We achieve this through our digital-first
strategy by selling directly to consumers through our website
at www.lxrco.com and indirectly, by powering the
e-commerce and other platforms of key channel partners. Our
omni-channel model is also supported by retail 'shop-in-shop'
experience centers and by wholesale activities with select retail
partners across North America.
Caution Regarding
Forward-Looking Statements
Certain statements in this press release are prospective in
nature and constitute forward-looking information and/or
forward-looking statements within the meaning of applicable
securities laws (collectively, "forward-looking statements").
Forward-looking statements generally, but not always, can be
identified by the use of forward-looking terminology such as
"outlook", "objective", "may", "could", "would", "will", "expect",
"intend", "estimate", "forecasts", "project", "seek", "anticipate",
"believes", "should", "plans" or "continue", or similar expressions
suggesting future outcomes or events and the
negative of any of these terms.
Forward-looking statements in this news release
include, but are not limited
to, statements regarding the Company's
revenues, covenants liquidity, discussion with bankers
and alternatives. Forward-looking statements reflect management's
current beliefs, expectations and assumptions and are based on
information currently available to management, which includes
assumptions about management's historical experience, perception of
trends and current business conditions, expected future
developments and other factors which management considers
appropriate. With respect to the
forward-looking statements included
this press release,
management has made certain assumptions with respect
to the economy, AOV, revenues, net income, liquidity and other
factors.
Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated or implied by
such forward- looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur.
By their nature, forward-looking statements involve known and
unknown risks and uncertainties and other factors that could cause
actual results to differ materially from those contemplated by such
statements. Factors that could cause such differences include, but
are not limited to, those factors described under the headings
"Risk Factors" and "Management's Discussion and Analysis of LXR –
Risk Factors" in LXR's annual information form (the "Annual
Information Form"), and as described from time to time in the
reports and disclosure documents filed by the Company with the
Canadian securities regulatory agencies and commissions. Such list
of risk factors is not exhaustive of the factors that may impact
the forward-looking statements. These and other factors should be
considered carefully, and readers should not place undue reliance
on any of the forward-looking statements in this press release.
All forward-looking statements included in and incorporated into
this press release are qualified by these cautionary statements.
Unless otherwise indicated, the forward-looking statements
contained herein are made as of the date of this press release, and
except as required by applicable law, the Company does not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE LXRandCo, Inc.