Jack Wolfskin reduces debt by 255 mn euros, outlook positive

European outdoor apparel company Jack Wolfskin has announced completion of its financial restructuring process. In a statement, the company said, by reducing liabilities to its lenders, the company will obtain a debt cut of 255million euros (289 million dollars), thereby reducing its liabilities from 365million euros (414 million dollars) to 110million euros (124 million dollars), with maturity extended to 2022. At the same time, the lenders have committed 25million euros (28 million dollars) in the form of a super senior loan, strengthening the company´s liquidity position.

Commenting on the restructuring update, Melody Harris-Jensbach, CEO at Jack Wolfskin, said in the statement: "After strengthening our liquidity and significantly reducing our liabilities and interest expense, the financial restructuring of Jack Wolfskin has been successfully completed. The company now has a sound basis and the necessary capital to further expand its business. Added to this is an encouraging trading scenario.”

Jack Wolfskin expects positive trading post restructuring

Jack Wolfskin’s new owners hold their equity interest through a Luxembourg holding company. The largest new owners will be Bain Capital Credit, HIG / Bayside Capital and CQS, who collectively hold more than 50 percent in the company.

On behalf of Jack Wolfskin’s main shareholders, Gauthier Reymondier of Bain Capital Credit added to the statement: "Jack Wolfskin is a very strong outdoor brand, number one in German-speaking countries and number three in China from the international outdoor brands. We are committed to supporting Jack Wolfskin and now that the restructuring has been completed, we are well positioned to develop the company further in the coming years."

“Following a positive business performance in line with our budgets, we are starting to see growth again in the German-speaking countries, which are traditionally our core market, as well in our focus markets. This trend is gathering additional momentum due to the high level of orders for our 2017 autumn and winter collection and positive feedback from our customers on our new product developments, including the new Texapore Ecosphere, which is made from 100 percent recycled material," Harris-Jensbach added.

Picture:Jack Wolfskin website