‘Something awry’ at Naked Wines as director quits after less than three weeks in the job and shares tank 41%

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Billionaire stock picker Warren Buffett once said, ‘When the tide goes out you only know who’s swimming naked.

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Now investors in Naked Wines can get advice on how to uncover companies’ weaknesses in a recession — which can be taken more literally than they’d like.

A director stepped down yesterday less than three weeks later and the firm began a review of the plans, leading Wayne Brown, an analyst at Librem, to comment: ‘Something has gone wrong.’

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Plonked: Naked Wines shares fall 41.4% after firm announces director Pratham Ravi’s resignation

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as shares 37.7 percent, or 54.7p, fell to 90.4p, with Naked Wines saying First Sun was resigning.

He is an analyst with Florida-based investor Punch Card Capital, one of the largest shareholders with about 10 percent stake.

Naked Wine also said it is trying to ‘find out’ a credit facility that lets it borrow money from its banks.

This comes after the Norwich Company warned in June that the retention rate had fallen to 80 percent from 88 percent in the previous fiscal year.

A few days later the chief financial officer left. Shares fell 40 percent on that day, and fell more than 87 percent in the previous year.

Naked said: ‘The Company is reviewing potential operating and financial plans for the next 18 months and will update these with our trading updates.’

This is going to happen next month. Brown said: ‘This could indicate a rebounding of small business and ambitions in the future, which is understandable given the poor key performance indicators.’

Credit: www.dailymail.co.uk /

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