The Herford-based clothing group Ahlers AG, which had to file for bankruptcy for the umbrella company and seven German subsidiaries at the end of April, presented its business figures for the first half of the current 2022/23 financial year on Thursday. However, due to the ongoing insolvency proceedings, which are still provisional, the parent company of brands such as Baldessarini, Otto Kern and Pierre Cardin has refrained from making forecasts for the coming months.
Despite sales increase: development is “well below plan”
In the first half of the year, which ended on May 31, the group generated sales of EUR 88.5 million. This corresponded to an increase of 10.2 percent compared to the same period of the previous year. Overall, however, the growth remained “well below plan”, the company admitted.
After revenue had risen by 39 percent in the first quarter, the clothing supplier had to put up with a serious setback in the second quarter: In the months of March to May, sales were 39.3 million euros and thus 12.5 percent below the corresponding figure for the previous year.
The net loss grows to 6.9 million euros in the first half of the year
“This development in the second quarter of 2023 is characterized by the first reactions to the announcement of the application for insolvency,” emphasized the company. “Many customers were initially unsure whether and how business operations would continue. As a result, some of the sales were canceled due to the seasonal nature of the merchandise, but some could be deferred to the next quarter.”
Despite this, the group made progress in terms of operating profit in the first half of the year. The loss before interest and taxes (EBIT) adjusted for special effects was reduced from 6.3 to 3.7 million euros. Extensive one-off charges, however, ensured that the reported net loss increased from EUR 6.0 to 6.9 million.
The Management Board refrains from making forecasts
In addition, Ahlers reported a significant increase in net financial debt. The company explained that this had increased “due to the high utilization of the credit lines shortly before filing for insolvency” from 31.8 to 44.5 million euros year-on-year. Accordingly, the equity ratio on May 31 was 28.3 percent. A year earlier, it had still amounted to 42.9 percent.
In view of the possible effects of the ongoing proceedings, the medium-term development is difficult to estimate, according to the group. Since business in the second half of the year “depends on too many unknowns”, the Management Board “cannot make any more precise forecasts on sales, earnings and financial positions,” explained Ahlers.
The search for investors has begun
However, the clothing supplier has already felt the first consequences of the current situation: “Against the background of filing for insolvency, there have been some sales losses that cannot be made up for. In addition, purchasing was reduced to orders secured with customer orders. This will result in further losses in sales, since the free storage business will no longer be available,” says a statement.
The company is now pinning its hopes on potential new financiers: the provisional insolvency administrator Biner Bähr has now “commissioned a well-known consulting firm to look for a suitable investor,” the company said.