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MySale Group announces strategic review and formal sale process

By Huw Hughes

24 Jun 2019

Business

Australian online retailer MySale Group has launched a review of the group's strategic options which could result in the company being sold.

The group said the strategic review will explore options including raising additional capital to support ongoing restructuring, reducing the group’s debt, selling certain parts of the group or the whole of the group, and de-listing of the company’s shares to trading on AIM.

The review comes as the company continues to experience “challenging trading conditions” in Australia, its largest market, which it says were “primarily due to the market disruption caused by changes to GST regulation introduced in July 2018, exacerbated by the group's product mix, international cost base and inventory location.”

As part of the company’s cost-cutting ‘ANZ First’ strategy, the group is also closing its UK and US operations and has already sold the trade and assets of its shopping platform Cocosa.co.uk to fashion retailer Brandalley for 1.5 million pounds. The company said it is now streamlining its supply chain to ANZ and South East Asia with international suppliers bulk shipping product to the Australian distribution centre where it is then shipped direct to customers in order to “[deliver] freight savings and operational leverage to the group.”

Over the last two years, the group said it has made a significant investment in developing its own proprietary marketplace platform which is being used to “successfully create revenue opportunities and operational efficiencies.” It also said it planned to launch MySale Marketing Services in Q1 2020 in order to generate advertising and subscription revenues and leverage data insights from the group’s technology platform and monetise the ANZ and SEA websites by delivering additional commercial revenues.

My Sale Group’s net debt at 31 May 2019 was 15.4 million Australian dollars, with total available facilities of 19.7 million Australian dollars.

Photo credit: MySale, Facebook