Naked Wines

Shareholders in Naked Wines suffered another hangover this week as media reports on the online wine retailer hiring Interpath to refinance its debt sent the shares tanking by more than 20%.

A spokesman for the company insisted on Monday the story published by Sky News over the weekend was not new. It pointed to a statement in its half-year results released in December announcing the business was working with advisors to explore refinancing options.

But investors were spooked nonetheless by the embattled group’s finances once again making negative headlines.

Shares, which have lost 40% of their value in the past year alone, nosedived 9% to 56.5p, leaving its market cap at just more than £40m.

The stock plummeted another 11% on Tuesday to 50.9p as Naked failed to reassure the markets with a statement.

The group stemmed the collapse in value on Wednesday morning with a short comment on the situation and a trading update.

Naked said the appointment of advisors to explore options for replacing or renewing its existing credit facility was disclosed on 15 December 2023.

The existing facility expires in April 2025 and the company added it was running “a typical replacement review” well in advance of that date.

Constructive discussions were being held with a number of parties, Naked said.

Trading also continued on an upward trajectory, with Q4 revenues in line with forecasts and an improved net cash postion of £17m expected thanks to the early redemption of the loan note issued at the time of the Majestic Wine sale.

Shares rallied as a result, clawing back 8.6% to 55p.

Reckitt Benckiser endured an even tougher week as it saw £5bn wiped off its value to a more than ten-year low following a court ruling in the US on the death of a premature baby fed with Enfamil formula.

Investors worried over potential further lawsuits in the US facing Reckitt’s Mead Johnson baby formula business.

Reckitt defended the safety of its products and is set to appeal the decision.

Shares, however, continued to fall and are down by 18% this week to 4,288p, lows not seen since early 2013.