N Brown's Struggles Point to Internal Issues, Not Juniors

In the United Kingdom, N Brown, an online clothing retailer, is in the process of being taken private through a £191 million cash offer, valuing shares at 40p each. This move is being led by Joshua Alliance, the son of Lord Alliance, who has significant control over the company. N Brown has expressed dissatisfaction with its listing on the AIM market, citing issues such as a troubled shareholder structure and low trading liquidity. The firm has highlighted the limited interest from UK fund managers in small cap consumer stocks, which has adversely affected its operations. Despite these challenges, N Brown still faces considerable costs related to maintaining its AIM listing. The decision to go private comes amid rising pressures on firms listed on the junior stock market, particularly those that feel they are not receiving adequate benefits from their listings. Observers note that the strategy may also be a response to external factors, including the potential risk of losing tax benefits associated with the AIM exchange, which could further incentivize companies like N Brown to reconsider their public status.