CANADA
Disappointing earnings by DAVIDsTEA led executives to admit during a call with investors that they are exploring strategic alternatives including a possible sale of the company.
Shares have lost more than half their value in the 12 months ending December 2017. Alternatives include a joint-venture partner, the sale of assets, a merger, divestiture, and possible restructuring and retrenchment from expansion into the US as sales at the company’s mall-based locations slow. It is possible a private-equity firm would acquire or refinance the company.
During the earnings call, c.e.o. Joel Silver said e-commerce sales grew by double digits. He said DAVIDsTEA will redesign its website at a cost of $4 million and emphasize product development, getting back to the core mission of selling tea. In the meantime, the company’s board of directors said it would seek advice from financial advisors.
Comments (1)
Comment FeedDavid's Tea
Nancy Prokosh Kleinert more than 6 years ago