In a triumph amidst a series of hardships, luxury hosiery and bodywear brand Wolford has announced that it has become debt-free and possesses enough funds to withstand the impact of the coronavirus crisis. This positive development comes as the buyer of its Bregenz headquarters complex has transferred the agreed purchase price of €72 million to the company, allowing Wolford to settle all outstanding debts and credit lines to its financing banks. Moreover, the company was able to repay the shareholder loan, including interests, granted by its main shareholder, Fosun Fashion Investment Holdings (HK) Limited.
Andrew Thorndike, an Executive Board member of Wolford, expressed his optimism regarding the company’s financial situation, confidently stating, “This means that our company is now debt-free and also has sufficient funds available to overcome the current crisis and drive forward the further development of the company as planned.” This influx of funds comes at a crucial time, as the pandemic has undeniably impacted Wolford’s sales and earnings. The full extent of the damage will be revealed when the company releases its results for the fiscal year ending April 30, which is expected to be towards the end of the subsequent month.
Wolford has been grappling with losses for a significant period, witnessing a consistent decline in sales. Two years ago, the company reported its worst sales in five years, and its revenues continued to plummet in the following 12 months. It is anticipated that this year will see an even more significant decrease in sales. In fact, in December, Wolford acknowledged the challenging first half of the fiscal year and predicted that the second half would be even more strenuous due to the ongoing pandemic’s impact.
With the burden of debt alleviated and a substantial cash reserve, Wolford is in an improved position to navigate the tumultuous landscape of the fashion industry. The company can now focus on implementing its plans for future development and effectively weathering the challenges brought on by the ongoing crisis. As the pandemic continues to shape consumers’ shopping habits, it is crucial for Wolford to adapt and innovate to meet changing demands. The fashion industry as a whole has been severely affected by the crisis, making it an environment where only financially stable and well-prepared brands can survive and thrive in the post-pandemic world. Fortunately, with its newfound financial stability, Wolford has positioned itself to weather the storm and emerge stronger on the other side.