The Austrian clothing supplier Wolford AG will no longer increase its share capital. On Saturday, the company, which belongs to the Chinese fashion group Lanvin Group, announced that it would forego the possibility of a capital increase. This was preceded by consultations with the parent company.
“Exploratory discussions with the main shareholder have shown that carrying out the capital increase within the deadline set by the general meeting does not appear to make sense from an economic perspective given the expected subscription volume of new shares,” it said in a statement. “An impairment of the company’s ability to cover its liquidity needs is not expected as a result of the non-implementation of the capital increase.” The Lanvin Group also “emphasized the long-term strategic importance of Wolford AG” and confirmed “that the company will continue to receive financial support, including through shareholder loans.”
The annual general meeting authorized Wolford’s board of directors at the end of July last year to increase the share capital to up to 22.6 million euros by issuing almost 7.7 million new shares, after a capital increase had been carried out just a few weeks earlier. The most recent authorization was limited to January 31 and has now not been used given the results of recent discussions with Lanvin Group. The board will also “propose to the next annual general meeting that the capital increase resolution be revoked,” said Wolford.
