Successful Restructuring: Refinancing of a Fashion Company
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October 25, 2023
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A German fashion company (manufacturer, wholesaler and retailer) initiated a restructuring in 2021. FTI-Andersch was commissioned to assist with the restructuring. As part of this, a so-called protective shield procedure was to be applied for two subsidiaries. In order to prevent negative effects on the reputation of the group, the Strategic Communications team of FTI Consulting was brought in to prepare and closely accompany the reporting and communication around the proceedings.
Our Impact
The Group secured refinancing with an international financing consortium and a large-cap German bank as arranger.
- The team facilitated internal enablement of key finance functions and liquidity planning processes to support transformation into a self-administered “NewCo.”
- The company was able to control its messaging, ensuring key stakeholders did not lose confidence and top performers were retained along the way.
Situation
The German fashion industry has been facing structural challenges and struggling with insolvencies for years – a situation that was further exacerbated by the COVID-19 pandemic and the war in Ukraine.
It was important for the team to secure the trust of the relevant stakeholders during the restructuring of the company as well as the insolvency proceedings of the retail units to be spun off in Germany. The company expected significant media and stakeholder scrutiny, and engaged FTI Consulting’s restructuring professionals and communications experts.
Our Role
- FTI Consulting’s Corporate Finance & Restructuring and Strategic Communications segments advised the Group throughout its restructuring.
- Mike Zöller of FTI-Andersch served as Chief Restructuring Officer. He and his team managed the debt reduction and disposal of non-operating assets. The implementation of Group-wide liquidity planning and ongoing liquidity management were key success factors in the strategic realignment. The rigorous implementation of the restructuring measures led to a significant increase in earnings.
- The Strategic Communications team prepared detailed and coordinated communications, differentiating so-called protective shield units. It identified relevant stakeholders, providing change impact analyses and communication packages including leadership talking points and social media announcements as well as safeguarding the process following the key announcement.
Published
October 25, 2023
Key Contacts