Tom Tailor receives 100 million euros loan

Tom Tailor GmbH has announced that the German federal government, together with federal states of Hamburg and North Rhine-Westphalia has extended a government guarantee for an operating loan of 100 million euros for the Tom Tailor subgroup, until the end of September 2024.

Additionally, the company said in a statement that the consortium of banks has also agreed to extend all existing credit lines with an adjusted volume of 355 million euros until September 30, 2024 and the company’s majority shareholder Fosun International Limited is extending the term of the 28.5 million euros loan granted to Tom Tailor GmbH until December 31, 2024.

Bonita files for insolvency proceedings

However, the company added that the guarantee commitment falls short of the amount requested by the company for the entire group, including Bonita since the guarantors believe that Bonita GmbH does not sufficiently qualify for further funding or guarantees. Tom Tailor said that Bonita has insufficient liquidity to cover the outflow of funds associated with the Covid-19 pandemic. In light of this and due to its impending insolvency, Bonita has applied for Chapter 11-like protective shield proceedings under its own administration.

The company further said that the insolvency of Tom Tailor Holding SE is also inevitable due to its intragroup obligations towards Bonita GmbH and the the company has therefore decided to file for insolvency with the Hamburg Local Court. Tom Tailor GmbH remains unaffected by the insolvency proceedings and can continue its operating business unchanged, in particular based on using the promised funds.

Picture:Tom Tailor media centre