Troubled apparel retailer Bossini has issued another profit warning after reviewing 11 months of its trading year.
In a filing with the Hong Kong stock exchange, Bossini says it expects that the loss attributable to shareholders for the period to May 31 was between US$38 million and $42 million.
The company attributed the loss to the adverse impact of social unrest and the subsequent arrival of the Covid-19 pandemic along with impairment provisions on property, plant and equipment
Bossini reported a loss of $12 million during the six months to December – more than triple the $3.3 million loss of the same period a year earlier. Sales were down 20 per cent to $90 million.
The company is subject to a takeover offer from a Chinese company controlled by retired Chinese athlete Li Ning, who plans to expand the business in Mainland China.
A venture called Viva China will buy 1.09 billion shares in Bossini, paying just $6 million for 66.6 per cent of Bossini’s issued capital, effectively buying out the family interests of Bossini’s founder Law Ting-pong.