Dive Brief:
- Online pet company Bark has received an offer to take the brand private, according to a Jan.9 press release.
- The non-binding indicative proposal letter was sent by Great Dane Ventures, which includes existing stockholders like Bark CEO and executive chairman Matt Meeker, RRE Ventures, Resolute Ventures, Founders Circle Capital and Ironbound Partners Fund.
- The proposal calls for Great Dane to acquire all of the company’s outstanding shares not currently owned by Meeker and the various bidding venture capital firms at $0.90 per share. The proposal is being evaluated and would need approval from the company’s board of directors.
Dive Insight:
The take-private offer follows years of financial challenges for Bark, which is known for its BarkBox and Super Chewer subscriptions.
Bark has received two non-compliance warnings from the New York Stock Exchange, with the most recent occurring last July. The company was given six months to regain compliance by having its stock trade at $1 or more for a 30-day period.
The company is “considering all available options to regain compliance with NYSE’s continued listing standards, including, but not limited to, a reverse stock split subject to stockholder approval,” a spokesperson told Retail Dive in an email.
Bark’s financial picture remains in flux, as the brand’s Q2 revenue declined more than 15% year over year to $107 million. It had a net loss of $10.7 million compared to a loss of $5.3 million the previous year.
Bark’s DTC revenue for the quarter was $82.1 million, a nearly 20% decrease year over year. Its Bark Air service, however, showed revenue growth of 138%, reaching $3.6 million.
