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$1.10 candy club holdings limited

Ann: Voluntary Administrators Letter to Shareholders, page-4

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spinecho

255 Posts.

33

14/11/22

21:11

Post #: 64767952
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Originally posted by Klue: ↑

Crap result for holders, many of whom had trust that JB had a plan.
The gross margin was just never there for this to ever succeed imo. Dollar shop candy in fancy packaging at a 43-46% gross margin. That's horrendous.
It was a massive swing for the stands, eventually sell the growing customer base before insolvency becomes an issue. Cohn knew the risks and wisely sold out.
The other red flag for me was the ever increasing inventory level. Even while the company was on it's knees that didn't drop. Has bad stock never been written down as a way to keep the balance sheet looking healthier? Based on some of the B2C reviews there seemed to be a lot of bad product in the warehouse.
I expect to see the administrators write down a large enough amount of the inventory that shareholders may have grounds for a class action against Directors/Senior Management.

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Crap result is an understatement for me. Big swing and strike out for me. Yes I knew this was high risk high reward but hoped my luck might change on this one - sadly not. Yes the red flags were there. Another lesson learnt. Good luck to fellow suffering shareholders.

CLB Price at posting: 4.6¢ Sentiment: Sell Disclosure: Held
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