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DPA
Translated by
Nicola Mira
Published
Jun 21, 2017
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Tom Tailor raises €61 million to boost e-tail, upgrade stores

By
DPA
Translated by
Nicola Mira
Published
Jun 21, 2017

German fashion chain Tom Tailor has managed to raise fresh capital on the stock exchange market, and stated on Wednesday that its new share issue raised approximately €61 million. 


Tom Tailor's latest share issue raised approximately €61 million - Tom Tailor


Nearly all of the 9.5 million new shares issued was bought out. The chain's majority shareholder, giant Chinese conglomerate Fosun, which now owns 29.99% of Tom Tailor, is understood to have fully exercised its preferential rights.

The vast majority of the fresh capital raised, approximately €50 million, will be invested in expanding the chain's e-tailing and marketing capabilities, improving the group's IT tools and upgrading its stores.

Tom Tailor is also seeking to boost its equity ratio, as it goes through a troubled period, faced with ferocious competition from fashion e-tailers and budget chains. In the past, Tom Tailor pursued a strategy of aggressive retail expansion, to the detriment of profitability. Also, the acquisition of the Bonita label turned out with hindsight to have been too costly, given the apparel market's sustained weakness.

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