Surfstitch has stated it has begun exploring the sale of its media assets and the potential for sales of other assets, following the cost disruption caused by ongoing litigation.
In a statement by the embattled etailer, Surfstitch indicated ongoing disputes between shareholder Crown Financial, class action lawsuits and the current investigation by ASIC continue to affect and impact its cash position.
While these events have not prevented the company from continuing its underlying retail businesses in Australia and the UK, the position of the business is being closely monitored.
The company has lodged extensive defences and cross claims in the proceedings with Crown Financial but are now looking to resolve the matter through settlement.
Negotiations also continue in both class action lawsuits, with constructive negotiations commenced in relation to the class action by plaintiffs represented by law firm Quinn Emanuel.
The NSW class action suit, led by Gadens lawyers, remains in its early stages.
As the company prepares for its extraordinary general meeting to remove existing director Sam Weiss, the board has once again strongly urged shareholders from voting for his removal.