Naked Wines has reportedly drafted in debt advisers to explore refinancing options after the group was hit by difficult trading conditions, Sky News has reported.
According to Sky, the wine retailer has hired Interpath Advisory to help it explore its options after the group started losing investor confidence.
Shares in Naked Wines have reportedly slumped by almost a third over the last year, leaving it with a market capitalisation of less than £50m.
A spokesman for the company told Sky: “We are considering the options for replacing our existing credit facility.
“Having sought expert advice on the current debt market and considering the strength of the balance sheet we believe there may be an opportunity to secure a similar-sized facility that has less limitation on utilisation and more flexible covenants resulting in fewer restrictions on the actions we can take to reduce inventory and drive our broader change agenda.”
Last year, Naked Wines reported that total revenues fell by 20% to £132.3m during the six months ended 2 October, while its pre-tax losses widened to £9.7m, up from £200k in the prior period.
The results came as the retailer’s revenues dropped in all markets, which it attributed to a reduction in repeat customer sales.
However, the group maintained that it expects to deliver between £40m to £50m cash inflow over the next 18 months from inventory optimisation.
