Takko Fashion has chosen to restructure its debts, making its creditors majority shareholders. The German textile discounter now wants to strengthen its position across Europe.
Debts become shares
In a move that almost halves its net debt to 300 million euros and also extends its credit terms by three years until 2026, the company’s owner Apax admittedly pays a high price. It loses its majority of the shares as the outstanding debts have been converted into shares, which means the creditors now take over the majority.
The financial restructuring should allow the company to expand again. Dutch CEO Tjeerd Jegen, formerly Hema CEO, says Takko Fashion’s discount model has proven its resilience and potential time and again. “The improved debt position and new capital structure allow us to invest in the future of the company and accelerate our efforts to realise our strategic priorities.”
Strengthening presence
Jegen plans to strengthen his company’s presence in Europe both physically and online, by opening new stores and expanding e-commerce. The retailer also wants to improve customer experience and optimise processes through digital transformation. “We are looking forward to welcoming our new shareholders”, he says.
Takko Fashion operates 2,000 stores in seventeen European countries. Online sales are currently less than a tenth of total sales. In 2022, sales rose 17.5 % to 1.23 billion euros, on an Ebitda of 136 million euros.
