MONTREAL, Sept. 15, 2020 /CNW/ - LXRandCo, Inc. ("LXRandCo" or the "Company") (TSX: LXR) (TSX: LXR.WT), a North American omni-channel retailer of branded vintage luxury handbags and accessories, announced that Century 21 Stores ("Century 21"), a long time retail channel partner of the Company, voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the United States.

On September 10, 2020, Century 21 announced that pursuant to financial pressures brought about by COVID-19, it expects to close all its brick-and-mortar stores and has launched an orderly wind down process. Prior to the announcement, LXRandCo had 12 stores within the Century 21 retail network. The Company has recovered all its inventory from these stores and will be filing a proof of claim for outstanding receivables in the amount of approximately US$ 200,000. In 2019, Century 21 represented 22% of the Company's total net revenue.

With the cumulative effect of retail channel partner closures in 2020, which include the closure and liquidation of Lord & Taylor, Stein Mart and Century 21, the Company now operates a network of 11 stores (as compared to 80 on January 1, 2020).

To alleviate the ongoing pressures from COVID-19 on its cash flow and the impact of permanent retail channel closures, as disclosed in the Company's September 3rd press release, LXRandCo is aggressively repositioning its business model from an omni-channel brick-and-mortar led strategy to an e-commerce high growth model with opportunistic brick-and-mortar support. As disclosed previously, LXRandCo's e-commerce revenue has grown at a compound annual growth rate of 52% from 2016 through 2019.

Among other things, the Company plans to further invest in people and marketing to expand its digital web presence through its lxrco.com site, and to leverage its activities through third-party e-commerce platforms, vintage-focused marketplaces and affiliate relationships.

The Company will be releasing its third quarter financial results for the period ending September 30, 2020 on November 13, 2020.

About LXRandCo

LXRandCo is a North American omni-channel retailer of branded vintage luxury handbags and other personal luxury products. LXRandCo sources and authenticates high-quality, pre-owned products from iconic brands such as Hermès, Louis Vuitton, Gucci and Chanel, among others, and sells them at attractive prices through a retail network of stores located primarily in major department stores in the United States and Canada, wholesale operations primarily in the United States, and its own e-commerce website, www.lxrco.com, as well as the e-commerce platforms of its partners.

SOURCE LXRandCo, Inc.

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