Card Factory is distressed

Hi guys I recently done a detailed analysis on Card factory its a bit long to read but worth it if you have this company on your watch list.

Check out the article on seekingalpha if you’re interested:


Card Factory’s problems started pre covid. The leveraged a lot of extra debt in 2019, and have struggled against that since. Its clear to see when the share price collapsed.

Their online platform is poor compared to the competition, and the only saving grace could perhaps be their downfall - they are cheaper than the competition in general, which hurts profit margins.

If we write off the intangible assets, then the net asset position falls negative.

They need to take advantage of halting their dividends last year, and continue to do so up until the point they are able to turn it around. They need to improve their online presence, look at what/where they have stores(are they still viable), and reduce their debt.

Similarly they are still issuing shares through their LTIP (Long Term Incentive Plan). On what performance basis can shareholders be happy with this?

I am not entirely convinced the current management can do that, and so seems the market, so its a bit of a gamble this one.


Definitely not for me.