Troubled tom tailor fashion chain gains time in struggle for turnaround. The bridge financing agreement with syndicate banks and tom tailor holding SE will be extended until mid-september, the company announced in hamburg.
The aim is to finalize an independent assessment of the company’s economic situation and to reach agreement on the final financing structure. A short-term loan from the major chinese shareholder fosun would also be extended. The banks and fosun remained in "constructive talks," it said.
At the same time, the situation of the fashion chain worsened: in the second quarter, sales of the tom tailor group fell by 6.4 percent year-on-year to a good 195 million euros, as the company further announced on the basis of preliminary figures. Operating profit (EBIDTA) slumped from 22.7 million euros to 4.5 million euros. Bonita also reported a drop in sales of over a quarter to 49.9 million euros and made an operating loss.
Tom tailor had recently been able to gain some breathing space as fosun supported the fashion chain with a loan of 18.5 million euros. An agreement was also reached with the syndicate banks: they had suspended regular repayments on a loan in the summer.
The sale of the crisis-ridden subsidiary bonita to the dutch victory& dreams international holding was last to fail, according to a tom tailor spokeswoman. The company, which specializes in fashion for women over 50, has been losing sales steadily recently. The industrial and retail conglomerate fosun, which has held a stake in tom tailor since 2014, recently increased its shareholding to a good 35 percent and submitted a takeover bid.