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

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Marten Alkhagen
Swerea IVF AB

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

Paolo Ocleppo
Sandvik Hyperion

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

July 2017

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

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

Yes No

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

Yes No

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


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



X