Tom Tailor board in negotiations for CEO and CFO's exit
By Prachi Singh
Oct. 9, 2019
Troubled fashion retailer Tom Tailor has announced through a brief statement on Tuesday that the company is currently in discussions with CEO Dr Heiko Schäfer and CFO Thomas Dressendörfer regarding their departure from the company before their contract’s maturity.
The Hamburg, Germany based fashion chain recently managed to reach an agreement on bridge financing with syndicate banks, which was first extended in August, initially until mid-September and a month later until the end of October 2019.
In February this year, Chinese investment major Fosun International increased its shareholding in Tom Tailor to over 30 percent, above the threshold set by the German Securities Takeover Act for acquisition of control.
At that time, Schäfer had said: “2019 will be a challenging year for the Tom Tailor Group - we will be further strengthening the growth of our core Tom Tailor brand in a difficult environment, and we want to make consistent progress in restructuring our subsidiary Bonita.”
However, the company’s efforts to sell troubled brand Bonita, which it acquired eight years ago, have failed. In a profit warning last December, Tom Tailor had announced that weaker than expected operational performance of Bonita will lower the full year EBITDA of the group.
Picture:Tom Tailor newsroom