Subsidiary Bonita GmbH applies for protective shield proceedings
Tom Tailor Holding SE has applied to the Hamburg District Court to open insolvency proceedings. Tom Tailor GmbH and thus the Tom Tailor fashion brand are not affected. The reason for the insolvency application is that the highly loss-making subsidiary Bonita GmbH has applied for the opening of protective shield proceedings in self-administration due to impending insolvency. Due to group-internal obligations to Bonita GmbH, insolvency at Tom Tailor Holding SE is unavoidable, the company announced.
The federal government, with the participation of the states of Hamburg and North Rhine-Westphalia, had previously promised Tom Tailor GmbH a federal-state guarantee for a working capital loan of 100 million euros for the Tom Tailor subgroup. The guaranteed financing has a term until the end of September 2024. In addition, the consortium banks have agreed in principle to extend all previous credit lines in an adjusted volume of 355 million euros at largely unchanged conditions until September 30, 2024 for the Tom Tailor subgroup. “For Tom Tailor as a fashion brand and Tom Tailor GmbH it is now time to get started. We will take advantage of this opportunity,” said Group CEO Gernot Lenz.
However, the guarantee commitment fell short of the guarantee amount requested by the company for the entire group, including Bonita. The guarantors did not see sufficient financing and guarantee ability for Bonita GmbH. There are therefore no financing commitments for Bonita GmbH, whose liquidity would not be sufficient to cover the cash outflows in connection with the Covid-19 pandemic.
