Home / Knowledge / News / Textiles / Gamma Holding: 2008 is successful year for Exotic Fabrics
Gamma Holding: 2008 is successful year for Exotic Fabrics
20
Feb '09
The worldwide recession in 2008 had major repercussions for Gamma Holding, also in relation to the company's financing arrangements. The company was affected by a fall in demand from industrial customers and consumers, notably in the last quarter. In the first nine months of 2008 the group also had to contend with exchange rate fluctuations.

These two developments in the world market meant that 2008 was a difficult year for Gamma Holding, one which - after the deduction of restructuring expenses and impairment of goodwill and acquired intangible assets - was concluded with a loss. As a consequence, Gamma Holding will not distribute a dividend for the year under review.

Cost cutting and debt reduction:
In order to achieve a substantial reduction of production costs in Western Europe, Sleep Care Fabric's German site at Münchberg was closed in 2008. Meanwhile the last remaining production location - in Waregem, Belgium - is being cut back considerably.

In order to strengthen the financial position of Industrial Solutions, the workforce in this sector will also be reduced. At the same time, both production and fabrication will be further optimised and there will be a greater emphasis on marketing & sales and innovation.

To reduce debt, Gamma Holding is looking into the possibilities of selling organisational units. In that framework the process of selling Verseidag Ballistic Protection has now been resumed.

The aforementioned measures form part of a group programme of cost savings, divestments and restructurings. The implementation of this programme will mean the loss of approximately 10% of the jobs (about 800 employees) within the group, 275 of which have already been discharged in the fourth quarter of 2008. These discharges are expected to involve a once-only sum for restructuring expenses of EUR 34 million, of which EUR 23 million has already been accounted for as expenses in 2008. Ultimately the programme should yield, from 2010, annual savings of approximately EUR 45 million.

Amended financing:
The decline in income also had an impact on the financing of the company. In December 2008, Gamma Holding agreed with the existing syndicate of banks that it would not be necessary to fulfil the existing covenants at the end of 2008 and that further discussions would be held on financing, based on the extra measures to be taken.

On 18 February 2009, agreement was reached with the syndicate of banks on changes to the existing facilities until March 2010, thus bringing the total facilities available to the company to EUR 390 million (including EUR 36 million cash pool and guarantee facilities). For details of the agreed financing, please refer to the appendix.

In the opinion of the banking syndicate, Gamma Holding should attract risk-bearing capital to a minimum amount of EUR 45 million. Gamma Holding is therefore examining several scenariosfor strengthening the group's risk-bearing capital or balancing the equity ratios. In that respect, Gamma Holding is examining the possibilities of and is holding talks on a rights issue, the issue of a subordinated loan and the realisation of a public-to-private transaction.


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Urmil Arya

Sushila International, a well established textile organisation established ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search