The cheap fashion retailer slipped into crisis during the pandemic. Now there is a deal with his financiers.
(Photo: dpa)
Frankfurt The ailing cheap fashion retailer Takko has reached an agreement with its creditors on restructuring. As the company announced on Tuesday, the bondholders will take over the majority in the course of a conversion from debt to equity. As a result, the shares of the owner, the private equity company Apax, are diluted to a minority position.
As part of the restructuring deal, Takko is reducing its liabilities by more than EUR 250 million and extending the loan terms to 2026. According to financial circles, Takko’s net debt was EUR 561 million in autumn 2022.
“Takko Fashion’s discount model has proven its strength, resilience and potential time and time again,” said Takko boss Tjeerd Jegen. In view of the reduced debt, the company can now invest.
Takko operates almost 2000 discount stores in 17 European countries. In the wake of the corona pandemic and the business closures, Apax’s company, which was heavily indebted, slipped into crisis. Unlike many other retailers, Takko has so far only relied little on the Internet as a sales channel. Online trading accounts for less than ten percent of sales.
Apax took over Takko from the financial investor Advent in 2010, according to press reports at the time, for 1.2 billion euros. Now Apax has declined to provide additional equity, handing control to bondholders led by Silver Point Capital, Albacore and Napier Park. Silver Point is the second largest shareholder in British fashion retailer Pepco.
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