Sosandar raises new funding, aims to widen third-party offer
Contemporary womenswear brand Sosandar has raised new investment cash as it aims to make the most of the growth opportunity with its third-party retail partners.
It has raised £5.3 million via a new share issue that it said was “substantially oversubsribed”. The stock exchange-listed pureplay e-tailer placed 26.2 million shares at 20p each — which is roughly the price its stock has been changing hands for during May.
In addition, it’s offering another 2.5 million new shares to raise further gross proceeds of up to £0.5 million. And it said one of its directors would subscribe for 150,000 shares at same price.
As mentioned, Sosandar wants to make more of its growth opportunities with third-party retail partners because, at the moment, an average of only 9% of its total product range is available for sale with them. It will focus particularly on investing in stock for AW21 and onwards.
The company has been reporting continuous sales growth in recent periods and it sees third-party retailers as a key part of its growth plan. Its latest results report in April included strong sales via John Lewis and Next. And there was also a “successful launch” with Marks & Spencer as a third-party online retailer at the end of March “with excellent initial sales”.
The fundraising comes just a few weeks after the company named its new finance chief with Steve Dilks promoted to the CFO role from his original finance director role.
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