Gibraltar & Company backed LXRandCo files for bankruptcy

CPE News

CPE News (10.6.2023) – LXRandCo, Inc. (TSX: LXR) announced today that the company and each of its Canadian operating subsidiaries, LXR Luxury Products International Inc., Groupe Global LXR Inc., and LXR Canada Inc. have each filed a Notice of Intention to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada), in order to consider and effect, among other things, a sale of all or substantially all of their assets, in consultation with their bank lenders.

KPMG Inc. has been appointed as proposal trustee on behalf of LXRandCo and operating subsidiaries.

KPMG has yet posted the list of creditors with the their debt amounts owing.

On October 4, 2023, PricewaterhouseCoopers LLP resigned as auditor by way of a written notice. No reason was provided by the auditor in its notice for its resignation, disclosed LXRandCo.

As of June 30, 2023, LXRandCo reported total liabilities of $11.9 million, including accounts payable and accrued liabilities of $3.9 million, current portion of long-term debt of $0.5 million, line of credit of $1.5 million, long-term liabilities of $1.8 million, not specified other liabilities of $2.6 million.

For the six-month period ended June 30, 2023, LXRandCo posted net revenue of $9.8 million, gross profit of $3.5 million and loss from operating activities of $1.4 million, net loss of $1.3 million and comprehensive loss of $1.6 million.

As of April 28, 2023, XRandCo had 92,783,155 shares outstanding

Camillo di Prata, CEO of LXRandCo and founder and CEO of Gibraltar & Company, Inc., beneficially controls 24,982,299 shares (26.93%), of which 17,929,156 shares are held through Gibraltar and its affiliates (Gibraltar Opportunity, Gibraltar Ventures One, Inc., Gibraltar Ventures Fund One Limited Partnership), a company which he controls, and 7,053,143 shares are held by him personally.

On March 30, 2023, LXRandCo raised $1.235 million by way of brokered private placement of unsecured convertible debenture units, with Gibraltar & Company subscribing $300,000.

Montreal based LXRandCo is an omni-channel retailer of authenticated pre-owned luxury handbags and personal accessories.

photo credit: LXRandCo, Inc.

News Release

LXRANDCo Announces The Filing of Notices of Intention To Make A Proposal Under The Bankruptcy and Insolvency Act (Canada) and Resignation of Directors

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

MONTREAL, Oct. 6, 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 the Company and each of its Canadian operating subsidiaries, LXR Luxury Products International Inc., Groupe Global LXR Inc., and LXR Canada Inc. have each filed a Notice of Intention to Make a Proposal pursuant to the Bankruptcy and Insolvency Act (Canada), in order to consider and effect, among other things, a sale of all or substantially all of their assets, in consultation with their bank lenders. KPMG Inc. has been appointed as proposal trustee on behalf of the Company and each of its Canadian operating subsidiaries.

The Company also announced that each of the directors of the Company and its subsidiaries have resigned as directors.

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 a sale of all or substantially all of the Company’s and the subsidiaries’ assets, in consultation with their bank lenders. 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.

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.

For further information: LXRandCo, Inc., Ms. Nadine Eap, Co-Chief Executive Officer and Chief Financial Officer, +1 (514) 564-9993 ext: 037, nadine.e@lxrco.com