Hugo Boss recently unveiled an ambitious expansion of its growth plan and on Tuesday the German fashion giant said it has secured a revolving credit facility to “ensure the successful execution” of the ‘Claim 5 Touchdown’ growth plan.
Hugo Boss
The €600 million loan (which replaces another loan of the same amount) “was considerably oversubscribed and aims at providing the company with additional financial flexibility”. It’s also linked to the fulfilment of clearly defined sustainability criteria.
“This successful transaction highlights the strong trust our lenders place in our company and its long-term potential,” said CFO/COO Yves Müller.
The loan has a term of five years and includes two options to extend the term by one more year in each case, plus an option to increase the credit amount by up to €300 million.
The company unveiled its strategy in early December, saying its next phase aims to “realign, simplify, and strengthen the business”.
In the short term it’s sacrificing sales and profits as it said that currency-adjusted group sales and profits will both decline next year. But the refreshed strategy aims to “sharpen focus, discipline, and execution across the business”.
It now clearly has the long-term financing to put its plan into operation with the option of even more money on the table if required.
