Specialist sports e-commerce company Signa Sports United (SSU) has expedited its strategic realignment and performance enhancement plan in response to the continuing microeconomic challenges.
Signa Sports United is a sports e-commerce company with businesses in biking, tennis and other outdoor sports markets.
The decision comes as the company struggles to cope with severe liquidity and profitability challenges, including a slump in demand.
SSU, which is headquartered in Berlin, has also decided to delist its shares from the New York Stock Exchange (NYSE).
The company will immediately start the process, with plans to make the delisting effective on or around 22 October 2023.
In a statement, Signa Sports United said: “Taking into account the limited liquidity and trading volume in the company’s publicly listed shares since the business combination in December 2021, the company’s Board of Directors has concluded that the benefits associated with being listed on the New York Stock Exchange (NYSE) do not justify the costs and demands of management’s time necessary to meet the company’s US regulatory commitments.”
The company will initiate the process for suspending its reporting obligations under the US Securities Exchange Act of 1934, as amended and expects the US deregistration of its securities to be effective prior to 31 December 2023.
In addition to delisting, SSU is considering streamlining its business by terminating or closing non-performing assets to strengthen its liquidity and financial position.
The company, which has more than 80 online sites and 500 partner shops, is also weighing divesting non-core assets.
The company withdrew its mid-term profit targets in response to weaker consumer demand and elevated promotional activity. It warned that fiscal year 2023 revenue will decline by more than the previously anticipated 11%.
To accelerate the realignment and performance enhancement programme, the company appointed Internetstores CEO Torsten Waack van Wasen as the group’s chief performance officer.
