Home / Knowledge / News / Fashion / Escada agrees to sell Primera GmbH at a loss
Escada agrees to sell Primera GmbH at a loss
25
May '09
ESCADA AG is about to complete the sales process started in December 2008 for the PRIMERA segment. At its meeting today the Supervisory Board approved the conclusion of agreements regarding the sale of the Münster-based PRIMERA Group. PRIMERA GmbH & Co. KG is a 100% percent subsidiary of ESCADA AG and comprises the labels apriori, BiBA, cavita and Laurèl. The corresponding contracts are set to be signed in the next few days. The details will be announced after conclusion of contracts.

The expected sales price necessitates another write-down of ESCADA AG's interest held in PRIMERA GmbH & Co. KG. As a consequence of this write-down the balance sheet loss already recognized in the Annual Financial Statement of ESCADA AG for fiscal year 2007/2008 now exceeds over half of the company's capital stock. This loss is in turn the result of the capital reduction resolved by the annual Shareholders' Meeting on April 28, 2009 not having been entered yet in the Commercial Register and thus is not effective at present.

Notwithstanding the already initiated restructuring program, the principles of which had been published in the Ad Hoc Disclosure of April 23, 2009, the Board of Management of ESCADA AG will convene a Shareholders' Meeting without delay and in accordance with Sect. 92 para. 1 of the German Stock Corporation Act in order to announce this loss to the meeting. The exact date for said Shareholders Meeting will be communicated in due course.

As expected the continued negative market environment meant that ESCADA AG's business performance over the first six months of the current fiscal year remained below the level of the previous year. Preliminary figures show half year sales of ESCADA Group and the discontinued PRIMERA operations together at 248.2 million euros, or 16.1% below the figure recorded for the same period the year before (April 30, 2008: 295.8 million euros), and thus in the lower range of expectations.

During the first six months of fiscal 2008/2009 ESCADA Group sales recorded a disproportionate decline by 23.9% year-on-year to 151.0 million euros due to the organisational separation of ESCADA and PRIMERA. Adjusted by this one-time effect, the sales for the ESCADA brand in the first six months of fiscal 2008/2009 totaled 146.5 million euros, or 18.1% under the comparable period of the previous year (April 30, 2008: 178.8 million euros).

The Group reports a preliminary half-year loss after taxes of 17.8 million euros (first six months 2007/2008: -6.0 million euros). After consideration of the discontinued operation PRIMERA and the valuation adjustment, the preliminary loss after taxes totals -91.7 million euros, after -8.0 million euros in the previous year period.

The Management Board's forecast for the full fiscal year still estimates sales for the ESCADA brand to decline by a lower double-digit percentage range. The negative effects this will have on earnings will be offset to some extent by cost savings. The Interim Annual Financial Statement for the first six months of fiscal 2008/2009 is due to be published in June.

ESCADA AG


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search