Will Brett Blundy Take The Company Private?, page-28

It's a contrarian investment on two counts. Firstly MACRO matters will not be kind to CCX which is arguably discretionary and secondly its contrarian because of self inflicted wounds. Our gamble is that managment can turn this around but the present management team are having difficulty in implementing the 'turn'.
Of a more general, yet important matter, is simply this: Does the business model and thesis still apply, despite it being appalingly implemented, and will it survive a recessionary period?
Brett Blundy's investment would suggest he believes in the busness model and thesis - and - he thinks it can operate through the recessionary cycle.
What isn't known is whether he thinks this management team can do it. But his $10m+ bet whould definitely have a written and ready to execute Plan B.

Whilst I am but a mere dumbassed retail investor, who is conscious of the Buffett quote that 'turnarounds rarely turn' I am encouraged by the logic behind this business.
In the western markets which CCX operates, are females getting smaller and thus fading out of the oversized dress size?
No. In fact, the demographics suggest women are gaining weight & hence the market is skewed towards oversized dress sizes.
You can also add that the 'larger woman' has prominently stamped their personna in the media with fashion runway time now encompassing larger dfemales, as well as the professional models who permanently eat lettuce and mung beans!
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Has the female desire to look attractive diminished? Absolutely not. In fact, it has been heightened by media and this includes the larger sizes as well.
Will females reduce expenditure because of tight home budgets? Maybe, but I am betting that female vanity and their desire to 'look good' will win the day. They might buy down in clothing price brackets but the CCX range can accommodate that. And, lets face it, they really want to look good for their female friends, because most of us boofy guys couldn't even tell the colour of their dress the next day. No, vanity has a real strong 'feel good' feeling in tougher times.
So, the issues I am most absorbed in here are (a) management getting themselves out of their horrid over stocking problem and (b) good old MERCHANDISING because this was at the dead centre of the stock overhang scenario. They bought stuff that the market didn't find attractive.
I'd be sure that BB will be looking at this critically.