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03/20/2019 | 19:44 CET/CEST

DGAP-News: TOM TAILOR Holding SE / Key word(s): Disposal/Strategic Company Decision

20.03.2019 / 19:44
The issuer is solely responsible for the content of this announcement.


Hamburg, 20 March 2019: Today TOM TAILOR Holding SE (ISIN DE000A0STST2) has concluded a sale and purchase agreement regarding BONITA GmbH with Victory & Dreams International Holding B.V., Netherlands. The parties have agreed to maintain confidentiality regarding the conditions of the sale. The closing of the transaction is subject to the usual approvals from the anti-trust authorities.


"The sale of BONITA is an important step for the TOM TAILOR Group. We are creating a clear situation, freeing up capacities and can in future focus fully on continuing to implement the successful strategy for our core TOM TAILOR brand. The TOM TAILOR brand did well last year in a difficult environment for the entire sector, with earnings fully in line within our expectations", says Dr Heiko Schäfer, CEO of TOM TAILOR Holding SE. "BONITA is going through a challenging restructuring process which we have strongly supported with great commitment in the past few months. And even though we have come a long way, we have seen that the synergies we aimed for when we purchased BONITA cannot be implemented within the TOM TAILOR Group."


"We have always said that we were preparing BONITA for every value-creating eventuality. This also includes the sale of the brand as a logical consequence", says Thomas Dressendörfer, CFO of TOM TAILOR Holding SE. "We are convinced that BONITA can successfully develop under the ownership of a strategic investor. It is important for us in this respect that Victory & Dreams International Holding has presented a concept for the continuation of the brand and the location in Hamminkeln. The brand fits into the portfolio of Victory & Dreams International Holding and will be able to develop its full potential, especially in cooperation with the retail chain Witteveen, which is part of the group."


TOM TAILOR Holding SE purchased the BONITA brand in 2012. Most recently, about 300 people were employed at the brand's headquarters in Hamminkeln, Germany. In the first nine months of 2018, BONITA posted turnover of EUR172.1 million and thus contributed 28.1 per cent towards the overall turnover of the Group. After nine months, the brand's EBITDA for fiscal 2018 was -EUR6.6 million.

The brand value of BONITA, which amounts to EUR184.5 million, will have to be written down in full as of December 31, 2018. In addition, the Management Board anticipates effects under application of IFRS 5 that will have a negative impact of a total of around EUR40 - 50 million on the result of the discontinued operation in fiscal 2018.


The company is to present its 2018 annual accounts including details on the deconsolidation and IFRS 5 effects in the course of April 2019. The publication of the annual accounts was originally scheduled for 21 March 2019.


About the TOM TAILOR GROUP
As an international, vertically integrated fashion company, the TOM TAILOR GROUP focuses on casual wear in the mid-price segment. The product portfolio is complemented by an extensive range of fashion accessories. With its brands TOM TAILOR and BONITA, the company covers the different core segments of the fashion market.
The TOM TAILOR brand is sold through retail and wholesale, i.e. via its own mono-label shops as well as via retail partners. These include 457 TOM TAILOR branches as well as 187 franchises, 2,524 shop-in-shops and 6,893 multi-label sales outlets. The brand is represented in over 35 countries.
BONITA has 754 of its own retail shops as well as over 85 shop-in-shop spaces.
In addition, the collections of both brands can be purchased via the companies' own online shops.
Find more information at www.tom-tailor-group.com


Press contact
Harriet Weiler
Head of Corporate Communications
TOM TAILOR GROUP
Telephone: +49 (0) 40 58956-168
E-mail: harriet.weiler@tom-tailor.com

Investor contact
Viona Brandt
Head of Investor Relations
TOM TAILOR GROUP
Telephone: +49 (0) 40 58956-449
E-mail: viona.brandt@tom-tailor.com



20.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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