Suitsupply founder Fokke de Jong has invested 35 million euros in the company. “I’m rebuilding the company, and you have to invest for that,” said the managing director. Additionally, Suitsupply has agreed with existing lenders to be more lenient on repayments.
De Jong also stressed that no other investors have been spoken to. No agreements were broken or payments missed. He points out that the capital structure is no longer quite right, also because emergency agreements were made to get the company through the Corona crisis. However, the company assumed six months while the Corona crisis lasted more than two years.
The Suitsupply boss also pointed out that the company’s goal had been adjusted. Before Corona, the goal was to open as many stores as possible and grow as quickly as possible, but now the main focus is on future-proofing Suitsupply, De Jong told Dutch magazine Quote. This includes responding to falling demand for suits and rising demand for “upscale casual wear”.
According to De Jong, sales in 2021 will be “at the level of 2019”, i.e. almost 300 million euros. The EBITDA (earnings before interest, taxes, depreciation and amortization) should also be positive. Just last year, Suitsupply announced that the company slipped 110 million euros into the red in the corona year 2020, with sales falling by a third. In the same report, it was announced that Suitsupply had discontinued its women’s brand Suistudio.
This translated and edited post previously appeared on FashionUnited.nl