Troubled fashion retailer Tom Tailor Group has reached an agreement with the consortium banks and majority Chinese shareholder Fosun on a new financing structure until the end of September 2022. Due to the planning timeframe through to 2022, the company’s management board has adjusted the preliminary results for fiscal 2018 that were published on May 13, 2019 and now expects turnover for the Tom Tailor brand at 618.1 million euros, an EBITDA of 64 million euros and an EBITDA margin of 10.4 percent, while turnover at the Bonita division remains at 225.7 million euros but EBITDA has decreased to 38.2 million euros.
“The new agreement, which will run until the end of September 2022 and has a total volume of 365 million euros secures the long-term financing of the Tom Tailor Group and allows for more flexibility with regard to future growth”, said Thomas Dressendörfer, CFO of TOM TAILOR Group in a statement.
Tom Tailor makes adjustments to preliminary figures
As a result of the adjustment, gross profit for Tom Tailor, the company added, will increase marginally to 349.7 million euros compared to previous estimate and for Bonita it will remain at 140.1 million euros.
“With the increase in provisions and the resulting adjustment of the 2018 figures, we are taking the declining operating development of Bonita into account. At the same time, we are sticking to our strategic growth initiatives for the Tom Tailor brand, such as strengthening our women’s segment, growth in digital channels and further internationalisation,” added Dr Heiko Schäfer, CEO of the Tom Tailor Group.
The company also said that initial appointment of Thomas Dressendörfer as Chief Financial Officer of the company took place in June 2016 and ended in June 2019, which has been extended by a further nine months until March 31, 2020 in order to negotiate and successfully conclude the new financing structure for the group.
Picture:Tom Tailor newsroom