On June 18th, Groen Holdings Group (01346.HK) announced that, according to a court order issued by the U.S. Delaware Bankruptcy Court on June 14th, 2024, Express Inc., as Bonobos' parent company and the group's largest customer (accounting for approximately 16.2% of the group's annual revenue as of December 31, 2023), will be sold (along with Bonobos) to a new owner consortium led by WHP Global.
As of the date of this announcement, the company has receivables of approximately US$6 million from Express Inc. and inventory of approximately US$9 million, most of which are goods withheld by the company. Although the company has credit risk control measures in place to minimize the impact, the company believes that such amounts may affect the sales and profitability of the mid-term performance. The company has started negotiations with the new owner consortium and plans to obtain more specific information when it releases the mid-term performance announcement for the period ended June 30, 2024, around August 2024.