Mister Spex, the eyewear retailer, has announced a major restructuring plan to address its financial challenges. This move follows a recent profit warning and a significant drop in its stock value.
Restructuring and cost-cutting measures
Just days after issuing a profit warning, Mister Spex is taking drastic steps to get back on track. The company’s shares have plummeted to less than a tenth of their initial public offering (IPO) price of €25, at which they were offered to investors during the summer of 2021. In response, the board of directors has approved an extensive restructuring plan, internally referred to as “SpexFocus.”
This ambitious project will include significant layoffs and the closure of several international stores. According to the company’s announcement, 10% of its 1,300 employees will be laid off. The international branches in Austria, Sweden, and Switzerland will be closed as part of the cost-cutting measures. Additionally, customers can expect price adjustments, although the company has not specified the extent of these changes.
Financial outlook and operational challenges
Initially founded as an online optician, Mister Spex hopes this restructuring will boost its operational profit, particularly earnings before interest, taxes, depreciation, and amortization (EBITDA), by more than €20 million. However, the overall cost of implementing this program is expected to reach approximately €9 million.
Mister Spex has been grappling with financial difficulties for some time. The Berlin-based company has already downgraded its annual targets for net revenue and profitability. It now faces the possibility of a revenue decline of up to 6%, although in the best-case scenario, it might achieve a 3% increase.
The situation at Mister Spex has also been marked by internal conflicts among shareholders, leading to the departure of two board members, according to a report by “Business Insider.” In late July, CEO and co-founder Dirk Graber stepped down from his position. Graber, along with Björn Sykora, Philipp Frenkel, and Thilo Hardt, founded Mister Spex in 2007, initially as an online-only company before expanding into physical retail stores. The company currently claims to have approximately seven million customers.
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