Lulus Announces Reverse Stock Split
Lulus (NASDAQ:LVLU) announced two significant developments: a 1-for-15 reverse stock split effective July 3, 2025, and a forbearance agreement with Bank of America. The reverse split will reduce outstanding shares from approximately 41.5 million to 2.8 million, primarily aimed at maintaining Nasdaq listing compliance.
The company also entered a forbearance agreement with lenders that expires on August 15, 2025. Lulus has submitted two term sheets from financial institutions for potential refinancing transactions before the maturity date.
Lulus (NASDAQ:LVLU) ha annunciato due sviluppi importanti: un split azionario inverso 1-per-15 con effetto dal 3 luglio 2025 e un accordo di tolleranza con Bank of America. Lo split ridurrà le azioni in circolazione da circa 41,5 milioni a 2,8 milioni, con l'obiettivo principale di mantenere la conformità ai requisiti di quotazione Nasdaq.
Inoltre, la società ha stipulato un accordo di tolleranza con i finanziatori che scadrà il 15 agosto 2025. Lulus ha presentato due proposte di finanziamento da istituti finanziari per possibili operazioni di rifinanziamento prima della scadenza.
Lulus (NASDAQ:LVLU) anunció dos desarrollos importantes: una consolidación inversa de acciones 1 por 15 que entrará en vigor el 3 de julio de 2025 y un acuerdo de indulgencia con Bank of America. La consolidación reducirá las acciones en circulación de aproximadamente 41.5 millones a 2.8 millones, con el principal objetivo de mantener el cumplimiento de los requisitos de cotización en Nasdaq.
La compañía también firmó un acuerdo de indulgencia con los prestamistas que expira el 15 de agosto de 2025. Lulus ha presentado dos hojas de términos de instituciones financieras para posibles transacciones de refinanciamiento antes de la fecha de vencimiento.
Lulus (NASDAQ:LVLU)는 2025년 7월 3일부터 시행되는 1대 15 역주식 분할과 뱅크오브아메리카와의 유예 계약 두 가지 주요 소식을 발표했습니다. 이번 역주식 분할로 유통 주식 수가 약 4150만 주에서 280만 주로 줄어들며, 이는 나스닥 상장 요건을 유지하기 위한 조치입니다.
또한 회사는 2025년 8월 15일 만료되는 대출기관과의 유예 계약을 체결했습니다. Lulus는 만기일 이전에 잠재적 재융자 거래를 위해 금융 기관 두 곳으로부터 조건서 두 건을 제출했습니다.
Lulus (NASDAQ:LVLU) a annoncé deux évolutions majeures : une fusion d'actions inversée au ratio de 1 pour 15 effective à partir du 3 juillet 2025, ainsi qu'un accord de tolérance avec Bank of America. Cette opération réduira le nombre d'actions en circulation d'environ 41,5 millions à 2,8 millions, principalement pour maintenir la conformité aux exigences de cotation du Nasdaq.
L'entreprise a également conclu un accord de tolérance avec ses prêteurs, valable jusqu'au 15 août 2025. Lulus a soumis deux propositions de financement de la part d'institutions financières en vue de possibles opérations de refinancement avant la date d'échéance.
Lulus (NASDAQ:LVLU) gab zwei bedeutende Entwicklungen bekannt: einen 1-zu-15 Reverse Stock Split, der am 3. Juli 2025 wirksam wird, sowie eine Nachsichtvereinbarung mit der Bank of America. Durch den Reverse Split wird die Anzahl der ausstehenden Aktien von etwa 41,5 Millionen auf 2,8 Millionen reduziert, um die Einhaltung der Nasdaq-Listing-Anforderungen sicherzustellen.
Das Unternehmen schloss zudem eine Nachsichtvereinbarung mit den Kreditgebern ab, die am 15. August 2025 ausläuft. Lulus hat zwei Term Sheets von Finanzinstituten für potenzielle Refinanzierungstransaktionen vor dem Fälligkeitsdatum eingereicht.
- Company has received two bona fide term sheets from reputable financial institutions for refinancing
- Reverse stock split helps maintain Nasdaq listing compliance
- Forbearance agreement provides additional time and flexibility for debt refinancing
- Company is experiencing financial distress requiring forbearance agreement with lenders
- Reverse stock split indicates significant stock price decline
- Risk of default if refinancing is not secured by August 15, 2025
Insights
Lulus faces serious financial challenges, implementing reverse split to maintain Nasdaq listing while seeking debt refinancing under forbearance agreement.
The announcement contains two critical developments signaling financial distress at Lulus. First, the 1-for-15 reverse stock split aims to artificially boost the share price to meet Nasdaq's minimum bid requirements, without addressing underlying business fundamentals. This will reduce outstanding shares from
More concerning is the Forbearance Agreement with Bank of America, which indicates Lulus has defaulted on its credit agreement obligations. This agreement temporarily prevents lenders from exercising remedies against the company through August 15, 2025, providing a narrow window to secure alternative financing. The company has submitted two term sheets from potential new lenders, but refinancing isn't guaranteed.
The forbearance expiration coincides with the August 15 maturity date, suggesting the existing debt is coming due and Lulus lacks capacity to repay it under current terms. This combination of events - needing artificial share price support while simultaneously working under a forbearance agreement - reflects severe liquidity challenges. The compressed timeline (less than two months to secure refinancing) underscores the urgency of the situation.
Company Announces Forbearance Agreement Under Amended Credit Agreement
CHICO, Calif., June 26, 2025 (GLOBE NEWSWIRE) -- Lulu’s Fashion Lounge Holdings, Inc. (“Lulus” or the “Company”) (Nasdaq: LVLU), the attainable luxury brand for women, today announced that on June 11, 2025, the Company’s Board of Directors approved a 1-for-15 reverse stock split (the "Reverse Stock Split Ratio") of the Company’s common stock, par value
The Reverse Stock Split is primarily intended to bring the Company into compliance with the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
As a result of the Reverse Stock Split, every fifteen shares of the Company’s issued and outstanding Common Stock will be automatically combined into one issued and outstanding share of Common Stock, without any change in the par value per share. No fractional shares will be issued as a result of the Reverse Stock Split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of shares of Common Stock not evenly divisible by the Reverse Stock Split Ratio, will be entitled to receive such number of shares of Common Stock rounded up to the nearest whole number. In any event, cash will not be paid for fractional shares. The ownership of a fractional interest will not give the holder thereof any voting, dividend or other right except to have the holder's fractional interest rounded up to the nearest whole number.
The Reverse Stock Split will reduce the number of shares of Common Stock outstanding from approximately 41,492,767 shares to approximately 2,766,185 shares. The number of authorized shares of Common Stock under the Certificate of Incorporation will remain unchanged at 250,000,000 shares. For additional information, please refer to our Form 8-K filed today.
The Company also announced today that it entered into a Forbearance Agreement (the “Forbearance Agreement”) related to the Credit Agreement, as amended, with Bank of America as Administrative Agent, Swing Line Lender and an L/C Issuer (collectively, “Lenders”) on June 23, 2025, which will expire on the earliest date that one of the following events occurs: (a) any Event of Default other than an Event of Default constituting the Acknowledged Defaults; (b) the breach by the Borrower of any covenant or provision of the Forbearance Agreement; or (c) 11:59 p.m. (Eastern time) on August 15, 2025. The Forbearance Agreement provides the Company with additional time and flexibility to pursue alternative debt financing options. As of the date of this press release, the Company has delivered two bona fide term sheets from reputable financial institutions that the Company believes have the financial capacity and wherewithal to consummate a Refinancing Transaction on or before the Maturity Date of August 15, 2025. Capitalized terms used above, which are undefined, have the meaning ascribed to them in the Forbearance Agreement or the Credit Agreement.
About Lulus
Headquartered in California and serving millions of customers worldwide, Lulus is an attainable luxury fashion brand for women, offering modern, unapologetically feminine designs at accessible prices for every occasion. Our aim is to make every woman feel confident and celebrated, supporting her for all of life’s occasions, big or small – from work desk to dream date, cozying up on the couch to the spotlight of her wedding day. Founded in 1996, Lulus delivers fresh styles to consumers daily, using direct consumer feedback and insights to refine product offerings and elevate the customer experience. Lulus’ world class personal stylists, bridal concierge, and customer care team share an unwavering commitment to elevating style and quality and bring exceptional customer service and personalized shopping to customers around the world. Follow @lulus on Instagram and @lulus on TikTok. Lulus is a registered trademark of Lulu’s Fashion Lounge, LLC. All rights reserved.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the ability of the Company to comply with the terms of the Forbearance Agreement, the ability of the Company to consummate a Refinancing Transaction on or before the Maturity Date, the trading of the Common Stock on a split-adjusted basis and the impact of the Reverse Stock Split, including any adjustments from the treatment of fractional shares; and other statements that are not historical fact. These forward-looking statements are based on management’s current expectations. These and other important factors discussed under the caption “Risk Factors” in Lulus’ Annual Report on Form 10-K for the fiscal year ended December 29, 2024, Part II, Item 1A, “Risk Factors” in Lulus’ Quarterly Report on Form 10-Q for the fiscal quarter ended March 30, 2025 and its other filings with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. These forward-looking statements speak only as of the date of this press release. The Company undertakes no obligation to update any forward-looking statement in this press release, except as required by law.
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