Closures planned
The domestic lingerie manufacturer Palmers is struggling with red figures. The losses have “slipped into the double-digit million range”, said Palmers CFO Kristian Radosavljevic.
According to Radosavljevic, the loss in the operating business is roughly on a par with the previous year, with even greater financial corrections and one-off effects in the foreign investments.
“Taken over”
According to the Palmers CFO, the company has “overstretched itself” in recent years and will withdraw from some markets in Eastern Europe. The loss in the 2022/23 financial year amounted to 4.5 million euros, while sales fell from 75 million euros to 71.5 million euros.
Over the next 24 months, we will have to reduce the store network in Austria from around 120 stores today to around 100.
Kristian Radosavljevic, Palmers-Finanzvorstand
Currently 500 employees at Palmers
The lingerie group now wants to reduce its locations in Austria. “Over the next 24 months, we will have to reduce the branch network in Austria from around 120 to around 100 branches,” Radosavljevic announced to the “Presse”. Around 500 employees currently work at Palmers.
Crowdfunding project
Palmers now wants to raise half a million euros from small investors via the crowdinvest platform Rockets in order to modernize the stores. “The fact that we are now launching a crowdfunding project for the rebranding of some stores has nothing to do with any financing problems,” said the Palmers CFO.
According to the Rockets website, 327 small investors have so far invested 343,500 euros in Palmers subordinated loans. The lingerie group has set itself a funding threshold of 500,000 euros by the end of September. If the funding threshold is not reached, the investors will receive their capital back immediately without any deductions, according to Rockets.
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