Adler Modemärkte AG
Adler Modemärkte AG: ADLER Receives €69 Million in Long-term Financing Commitments
DGAP-News: Adler Modemärkte AG
/ Key word(s): Financing
Press Release from Adler Modemärkte AG
ADLER Receives €69 Million in Long-term Financing Commitments Haibach (near Aschaffenburg), 12 May 2020: Adler Modemärkte AG is driving forward the strategic development of the company in order to emerge from the current Covid 19 crisis stronger than before. In this context, ADLER has secured additional financial leeway to stabilise business operations and to provide additional financing for ADLER Group with financing commitments of €69 million. The underlying syndicated loan has been granted on the basis of a joint guarantee by the state governments of Bavaria and North Rhine-Westphalia, to be disbursed to Adler Modemärkte AG by its core lenders at standard market terms for a term of six years. As a result of the guarantee commitment available as of today, the loan agreement already concluded as part of interim financing can now be fully utilised. Financing should help to emerge stronger from the crisis Building on its unique positioning as the market leader in the target group of affluent customers aged 55 and over, ADLER will use the extensive financial resources to initiate additional strategic measures to return to its targeted profitable growth path as quickly as possible. In this context, the management team has already begun to draw up initial conceptual approaches to realign all structures and processes above and beyond ADLER’s “Strategy 2023” initiative and across every link in the value chain so that it is prepared for the post-crisis era. ADLER believes that there is significant additional potential, e.g., through the continued optimisation of working capital management, a reduction of risks within the business model, continuing efforts to optimise stores and expanding online activities even further than previously. In financial year 2019, ADLER reported net liquidity of €70.1 million with €57.4 million in free cash flow – demonstrating the financial soundness of its business model despite the difficult conditions in the textile retail industry “ADLER has successfully secured its operations for the long term by obtaining financing commitments of €69 million. The significant financial strength of our business model, which we have demonstrated in previous years, and our long-established, solid relationships with our primary banks have formed the basis for this success. By taking this step, we are preparing ourselves financially for the impact of the COVID-19 pandemic, and we are confident that we will emerge from this difficult time even stronger,” said Thomas Freude, CEO of Adler Modemärkte AG. Focus on securing liquidity and cost-efficiency – sales in stores ramping up again As of today, apart from 10 locations in Bremen, Hamburg and Saxony – where sales are still restricted to 800 square metres – all of the Company’s 142 stores in Germany have reopened with entire floor space, which averages well over 1,500 square metres. The health and safety of employees and customers remains a top priority in this exceptional situation. The Company’s 29 stores outside of Germany also reopened in Austria (24), Luxembourg (3) and Switzerland (2). Still no reliable forecast possible for 2020 For more information about the Company, please visit ADLER’s website at https://www.adlermode-unternehmen.com/en/. Adler Modemärkte AG press enquiries and investor relations: About Adler Modemärkte AG:
12.05.2020 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Adler Modemärkte AG |
Industriestraße Ost 1-7 | |
63808 Haibach | |
Germany | |
Phone: | +49 (0) 6021 633 0 |
Fax: | +49 (0) 6021 633 1299 |
E-mail: | info@adler.de |
Internet: | www.adlermode.com |
ISIN: | DE000A1H8MU2 |
WKN: | A1H8MU |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1042801 |
End of News | DGAP News Service |