The board of directors of Digital Brands Group has unanimously decided to start a formal review to explore strategic alternatives to maximise shareholder value.

Headquartered in California, US, Digital Brands Group is a curated collection of luxury lifestyle, digital-first brands, offering a variety of apparel through direct-to-consumer and wholesale basis.

The company will immediately initiate a comprehensive review and evaluate a diverse range of options.

No specific deadline or definitive timetable for the completion of this process is provided.

As of now, the outcome of this process is also not certain.

Digital Brands Group said that it will not make further announcements on the process unless appropriate and necessary.

Digital Brands Group CEO Hil Davis said: "Given the continued dislocation between Digital Brand Group's public market value and the intrinsic value of Digital Brands Group's underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximising value for our shareholders."

In its second quarter (Q2) fiscal 2023, the company registered net revenues of $4.5m, an increase of 69.6% compared to $2.6m in the same period a year ago.

Net income attributable to common stockholders was $5.0m in Q2 FY23, and its earnings per diluted share were $0.38 against a loss per share of $26.47.

Earlier this year, the company received a notice from the Nasdaq Stock Market for lack of compliance that could result in the brand’s securities being delisted.