Tom Tailor fails to get Bonita sale approval
Tom Tailor has had its struggles in recent periods but it must have thought its plan to sell under-performing Bonita to Dutch company Victory & Dreams International Holding would put it back on the right track. However, that plan has now been almost put on ice after a consortium of its lenders failed to give their approval for the disposal.
The sale would have meant a brand value write-down of more than €184 million around Bonita.
So what happens now? The company said there will be a review of “further strategic alternatives” for the Bonita brand. It also said there are “ongoing negotiations between majority shareholder Fosun and [the] consortium.” Those “currently stalling” negotiations with the consortium banks are regarding the adjustment of their loan contract, as well as with Fosun about its financial contribution to the company.
The management board said it will continue its efforts to obtain the approval of the banks, however, “it is currently working on the assumption that such approval is unlikely” with its review of options also including it potentially resuming the sale process (and presumably seeking a higher price). At the same time, “ongoing restructuring measures will be further intensified.”
CEO Dr Heiko Schäfer said: “We are very disappointed by this development - as on the one hand the sale of Bonita has not been completed despite all efforts in this regard; and on the other hand because we still consider it the best option.”
Copyright © 2021 FashionNetwork.com All rights reserved.