The clothing supplier Wolford AG has cleared the way for its capital increase announced at the end of September. The company, which is based in Bregenz, Austria, announced that it was decided at an extraordinary general meeting on Wednesday to first reduce the capital to EUR 32.3 million and then increase it to almost EUR 48.4 million through a capital increase. To this end, around 3.3 million new shares are to be issued against cash contributions, with the shareholders being able to exercise their statutory subscription rights.
Wolford announced that the capital increase, which is to be completed in the first quarter of next year, would bring the company up to EUR 20.2 million. This increases the equity ratio to around ten percent.
Chief Commercial Officer (CCO) Silvia Azzali commented on the measure in a statement: “We are pleased that the general meeting approved the capital increase. This will strengthen our equity base and enable us to systematically pursue our strategy to further develop the Wolford brand,” she explained.
The company, which had achieved an increase in sales of 29.4 percent in the first half of the current financial year but had slid deeper into the red, now sees itself on the right track: “The board duo, which has been active since August 2022, has now consistently managed the operating costs reduced, including, among other things, lower rental costs in the course of downsizing the offices at the headquarters,” says a statement. Management is currently focusing “on improving operational processes in order to be able to react more quickly to changing market requirements”.
Wolford is also hoping for “substantial tailwind” from the forthcoming IPO of the Chinese fashion group Lanvin Group, which holds around 58 percent of the shares in the Austrian legwear specialist. “Wolford is one of the Group’s largest holdings and our business will benefit from a stronger position across the Lanvin Group,” said Azzali.