N Brown Group (BWNG)

[Bouleversee]

As nothing has been mentioned about the Open Offer at 57p, I presume I am the only Fool/fool still holding shares in this company which sells clothing for large sizes. (When I bought, I thought there would be a lot of demand for their products.) I think they once qualified as a HYP share but they have been a disaster for some time. I actually have 2 holdings, one in an ISA, and between the 2 would have to cough up just over £800 to avoid dilution. I believe they are planning to resume paying dividends and are transferring to the AIM register on Dec. 23.

I am losing 78.79% in my dealing acct. and 85.36% in my ISA a.t.m. (over £6,500 in toto) and wondering whether I should cut my substantial losses and get out now, releasing peanuts, or pay the extra and risk losing more, as I did with Carillion and Interserve. Doris would appreciate some comments, so long as they are gentle.

[kempiejon]

I hold. Like you I thought the larger size specialist market was bound to grow. They have some big brands JD Williams, SimplyBe, Jacamo. Sorry about the puns.
I'm doing nothing. They'll become AIM, that doesn't really bother me but I'd not usually seek out that market.
Sod the dilution. My diminished, now AIM listed, shares will just sit in my portfolio. Perhaps this'll mark a turn around - I know that I don't know so I'm doing nothing.

[Bouleversee]

Thanks, Kempiejon. Glad I'm not the only one. Still dithering but must act before Dec. 8.

[dspp]

Moderator Message:
I've tweaked the thread title to be more per Main Market share news, and left it here for the time being rather than relocating it to Share Ideas as would be normal for an off Main Market listing.
regards,
dspp

[dealtn]

It's on my watch list, which actually means when I get around to doing a proper analysis of it I might buy (or pass). It came on the radar because of the Open Offer, and doesn't appear to have moved in price since then - which is good as I haven't "missed" it (yet).

Massive distortions due to Covid, and the potential Bad Debt situation from an economy propped up on furlough money needs to be assessed.

It looks attractive as a business if it can reconcile the move to clothes shopping away from the High Street, and as such could even be seen as a takeover target by a growth player in the "clicks" fashion market (BOO?)

I wouldn't focus on "sunk costs" as a personal investor, that kind of anchoring only distracts from investment decisions concerning the future. Besides with the increased share count pots the offer the equity upside is spread thinner than the original purchase(s).

If I took the plunge I would hope the company didn't pay dividends and kept the cash flows internally. The fund raise helped reduce debt but why improve the Balance Sheet to pay dividends? Better to use that strength to invest in the business and transform.

Some may be put off by the move from the main listing to AIM but I doubt that is relevant from an investment perspective, indeed it should remove costs.

[Bouleversee]

Thanks, dspp. I did wonder which was the most appropriate board but it's not on AIM till Dec. 23 so I plumped for this one.

[Bouleversee]

It's on my watch list, which actually means when I get around to doing a proper analysis of it I might buy (or pass). It came on the radar because of the Open Offer, and doesn't appear to have moved in price since then - which is good as I haven't "missed" it (yet).

Massive distortions due to Covid, and the potential Bad Debt situation from an economy propped up on furlough money needs to be assessed.

It looks attractive as a business if it can reconcile the move to clothes shopping away from the High Street, and as such could even be seen as a takeover target by a growth player in the "clicks" fashion market (BOO?)

I wouldn't focus on "sunk costs" as a personal investor, that kind of anchoring only distracts from investment decisions concerning the future. Besides with the increased share count pots the offer the equity upside is spread thinner than the original purchase(s).

If I took the plunge I would hope the company didn't pay dividends and kept the cash flows internally. The fund raise helped reduce debt but why improve the Balance Sheet to pay dividends? Better to use that strength to invest in the business and transform.

Some may be put off by the move from the main listing to AIM but I doubt that is relevant from an investment perspective, indeed it should remove costs.

So do you think it will shoot up once the open offer has gone through? It's already ex-offer so far as shareholders are concerned, of course. I am quite pleased it's going on to AIM as it will not be subject to IHT and my heirs will benefit from any gain, till Sunak decides to abolish that concession, that is.

[dealtn]

So do you think it will shoot up once the open offer has gone through?

As I said I haven't done my analysis yet, so my answer at this stage would have to be no. Why would the market be that inefficient? I'll have more of an opinion once I've spent an hour or two looking at the numbers and forming a view. It would have to show a possibility of 100% gain on a 2-5 year time frame to meet my requirements. That wouldn't fit a "shoot up" on your kind of time frame if I'm honest.

[Bouleversee]

If my heirs hold on to the shares, my personal time frame is irrelevant, isn't it?

[Bagger46]

It's on my watch list, which actually means when I get around to doing a proper analysis of it I might buy (or pass). It came on the radar because of the Open Offer, and doesn't appear to have moved in price since then - which is good as I haven't "missed" it (yet).

Massive distortions due to Covid, and the potential Bad Debt situation from an economy propped up on furlough money needs to be assessed.

It looks attractive as a business if it can reconcile the move to clothes shopping away from the High Street, and as such could even be seen as a takeover target by a growth player in the "clicks" fashion market (BOO?)

I wouldn't focus on "sunk costs" as a personal investor, that kind of anchoring only distracts from investment decisions concerning the future. Besides with the increased share count pots the offer the equity upside is spread thinner than the original purchase(s).

If I took the plunge I would hope the company didn't pay dividends and kept the cash flows internally. The fund raise helped reduce debt but why improve the Balance Sheet to pay dividends? Better to use that strength to invest in the business and transform.

Some may be put off by the move from the main listing to AIM but I doubt that is relevant from an investment perspective, indeed it should remove costs.

So do you think it will shoot up once the open offer has gone through? It's already ex-offer so far as shareholders are concerned, of course. I am quite pleased it's going on to AIM as it will not be subject to IHT and my heirs will benefit from any gain, till Sunak decides to abolish that concession, that is.

Yes Lorna, your last point is a concern, at the moment not part of my own IHT planning, which is straightforward, but definitely part of my wife’s, at least on a temporary basis, because she would also further accelerate our ‘7-year rolling allowance’ giving it away to the grandchildren (the children are sorted, they don’t need/want anything(of the £ kind ) more from us) anyway, once I have gone.

Bagger

[dealtn]

If my heirs hold on to the shares, my personal time frame is irrelevant, isn't it?

I was referring to your "shoot up once the open offer has gone through". That suggests days, or weeks at the most as a timeframe, and I think that unlikely. I have no idea of your age or expected longevity to know about the time frame on which your heirs might inherit.

[Bouleversee]

Dealtn: Ah, I see. Thanks. Some posters on ADVFN suggest that the price will rocket but I expect they are just ramping traders. Having bought at 264, 400 and 356 in 2010, 2014 and 2016, I shouldn't think there is any way of getting my money back and the question is whether buying any more shares in this outfit offers a better chance of recovering some of it than buying more of some other stock. They were 159.60 in January but had started to fall before Covid struck. It has occurred to me that the Covid impact on the obese might have frightened a lot of people into slimming down and Brown's market may have shrunk a bit. I will probably take up both my entitlements but whether it is worth applying for any more than that in my ISA is another matter. Brain fog isn't helping me to decide!

Do post again when you have done your analysis and come to a conclusion.

[MediCyntaf]

I am ashamed to say that on the joint account I have a loss of 82%, average 322p, 611 rights. On my own account I have a loss of 76%, average price 242p, 1026 rights. They have been in the portfolio since 2013 and 2014. Yes, they cater for larger sizes and under Ambrose Wilson/JDWilliams/Julipa (before brand integration) they marketed to the older woman. Bon Marche, marketing to the same demographic. I don't want clothing that is poor quality - inferior fabric, poor cut, poor styling and fit. I don't want clothes that fray easily/disintegrate/bobble after a very few washes. I want something that lasts beyond the current season.

For a short period they had shops. There was a store at Oxford Circus, etc. In October 2016, I visited the store in Belfast City Centre. I remember the clothing was flimsy, predominantly in red and black. I could see and evaluate a whole seasonal offering. It was tarty. I felt embarrassed/uncomfortable in the empty shop. One visit was enough. However, I am still a customer. I buy black workwear trousers in multiples. I buy their shoes in eeeee-width as I would have to pay £100+ to the couple of specialist retailers. Brantano - remember them, used to do a couple of token styles. Clarks/Next/ShoeZoneBigBox/Hotter/Pavers offer nothing in these widths. The shoes are okay - just okay. I bought 'im Indoors a pair once, the soles disintegrated very quickly. Myself, I am a captive customer.

Delivery is fast and cheap. Website very easy to use. Wrapping is horrible. I have twice received pairs of shoes in mismatched sizes.. My ever pleasant courier tells me this is not an unusual occurrence.

Over the past year I have followed others into vintage clothing. Vintage clothing can be high quality and relatively inexpensive. I remember when clothing was generally costly but well made. I believe I use the best known vintage/crafter's website. The quality of service and customer experience is second to none. Service is personal and the packaging can be thoughtful and special.

The market town I live in serves a population in a 40-45 mile radius. It is well served by Debenhams, House of Fraser, M&S, Sports Direct, etc. On a dry Saturday afternoon it is interesting to see who visits which shop and the bags carried. Primark is the outright winner by a long shot. It has long queues to go inside. However, the two Hospice shops, which have good window displays and sell qualify for the clothes, accessories and homewards do very well also. It has cheery, personable volunteers. In market towns one still likes personal service and be recognised as a customer. One of these shops is doors away from the global HQ of a recently failed clothing/mass heritage brand. Very, very sad for the few hundred people who worked in that building and in the local shop, a little further away.

I bought Brown shares as I was a customer. It offered a good dividend. It had a woman CEO. I must have been a reasonably happy customer to buy the shares when I did. I have been buying my multiple purchases online for a long time. I can't remember when I last saw or received a catalogue. I won't be taking up the Rights and I need to take another decision as I don't like the less-regulated AIM. Medi

[MediCyntaf]

JDW has been around for generations. Know somebody who proudly says he was dressed by them as a child in the thirties. Much women's fashion has been sized up and is in mainstream High Street stores now. Also, sizes have been messed about with to give vanity sizes - a larger size demoted to a smaller size, etc. Let the woman believe she takes a smaller size. Older women aren't going into clothes shops because of Covid. Older women can buy online, but if they are not going out to family/socialising, they won't want their sparkly tops, etc. Brown offered shareholder discount until fairly recently. I used to find when I placed a telephone order (password fog!) the call centre rep had never heard of Brown. Has anybody looked at their numbers. It will go down to AIM, but could it then disappear into private equity? Medi