The complicated unravelling of the Surfstitch empire continues with news that UK-based Surfdome, which it has just sold, is now exclusive global e-tail provider for another ex-Surfstitch property, Magicseaweed.
Surfstitch will extend its current trading halt on the ASX, on the back of implications from a $100 million class action and "the high level of uncertainty around the negotiations with the litigation funder."
The Australian online surf and apparel retailer reissued its full-year profit guidance on Monday, warning that losses would double to between A$10.5 million and A$11.5 million in the 12 months ending June.
The Australian online retailer continues to be under-pressure with a second class action from shareholders who lost money when its share price was wiped out by a series of profit downgrades and ill-advised acquisitions.
The under-pressure Australian online surf retailer reported a narrower half-year profit loss on Tuesday, largely due to the impact of the near $17 million sale of Surf Hardware International in December.
The recovering Australian surf and apparel e-tailer has accused former chief executive Justin Cameron and industry confrere Kim Sundell of conspiring to inflate revenues and profits in the first half of 2016.