Cortefiel admits liquidity problems
Spanish retail group Cortefiel, owner of lingerie brand Women’secret, is struggling to cope with a 1.17 billion euro debt pile, according to its yearly management report presented at the annual general meeting in September.
According to Spanish newspaper El Confidencial, the company’s debt restructuring plan launched at the beginning of the year failed to provide relief. The retailer’s owners CVC, PAI and Permira decided to put IPO plans on hold in February, citing poor market conditions and the political climate in Spain. Efforts to find a buyer have also failed.
Creditors are losing confidence in Cortefiel’s ability to repay its debts. If the clothing business fails to find further sources of financing, the company could suffer despite the efforts of its leadership team to continue expanding its brands.
Recently, Cortefiel appointed Jaume Miquel as new Chief Executive Officer and former Loewe boss, Manuel Serrano Muñoz, as Chief Financial Officer.
With its brands Cortefiel, Pedro del Hierro, Springfield, Women’secret and Fifty Factory, the group is one of the largest fashion companies in Spain. It operates over 2,095 stores in 89 countries.
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