Atualizado: 28 de set. de 2022
Restoque, a high-end clothing and accessories company ended the fourth quarter with a loss of R$661 million in 2021, almost double the losses of the previous year. One of its brands, Le Lis Blanc manages to exchange debts for shares and gains breath of more than 1.5 billion reais in Brazil.
Restoque that owns brands such as Le Lis Blanc, Dudalina and Bobô, gained an important financial breath after turning part of its debt into company shares on 18th August. The negotiation was approved at the Extraordinary General Meeting and at the General Meeting of Debenture Holders, both held last Thursday. According to a statement released by the retailer, there will be an increase in the company's share capital between R$ 1.58 billion (minimum value) and R$ 1.765 billion (maximum value).
The company had previously concluded an agreement with its financial creditors to reposition all of its financial indebtedness on June 4th, 2020. The entire debt then of R$ 1.435 billion was extended for the long term. In other words, this latest event has given the company even more breathing space to get things in order.
Competing for higher income with international brands, Restoque has been going through difficult times for several years, so after several attempts to take off they had to close Noir, their men's brand. The restructuring came after their credit rating was downgraded by Fitch credit agency earlier this year.
The company clearly has massive potential to ride out the debt scenario and promises to keep selling high end fashionwear for a demanding market.
Prof. Carl Boniface
Reposition (v) = move, relocate, shift, transpose, change the position, put something in a new place
Indebtedness (n) = obligation, the condition of owing money the feeling of owing gratitude for a service or favor. "I wish to express my indebtedness to my parents for all they have done."