Naked Brand Group’s loss in the first half ended July 31 widened to $26.5 million from $18.5 million a year earlier in, as it struggled securing adequate inventory due to “liquidity issues,” the company said in an SEC filing this week. Revenue declined 5.1% to $56.8 million. Naked Brand Group is the surviving company from the June merger of Naked Brand and Bendon.

The wider loss and sales decline came before Naked Brand reached an agreement with CVS Pharmacy to sell its licensed Heidi Klum Intimates Solutions (bras, underwear) online and in about 4,000 stores.

The new distribution followed the end in June of Naked’s agreement for fashion designer Stella McCartney brand lingerie and swimwear, capping Bendon’s 10-year run with the brand. McCartney has signed with new licensee ISA Spa. Naked also has a licensing agreement with Authentic Brands Group for Fredericks of Hollywood.

To fund its business, Naked has raised $10.1 million since July as part of a restructuring that included hiring Justin Davis-Rice as CEO, renegotiating supplier contracts and cutting costs. The $10.1 million in funding will be used partly to buy inventory.

Naked also is negotiating a new credit agreement to replace one that expired last July. The changes are expected yield positive cash flow by October 2019, the company said.

Contact:

Naked Brands Group, Justin Davis-Rice, CEO, 646-653-7710