Private equity firm Blackstone has sold its German outdoor brand Jack Wolfskin to a group of debtors, who will now relinquish a part of the debt.
International expansion created enormous debt
Jack Wolfskin will write off 255 million euro in debt, lowering it to 110 million euro. The new owners will also invest another 25 million euro to give the chain more working capital. Bain Capital Credit, HIG/Bayside Capital and CQS are the new owners, who now control more than 50 % of Jack Wolfskin.
“Door het versterken van onze liquiditeit en het sterk terugdringen van onze passiva en interestuitgaven heeft het bedrijf nu een stevige basis en het nodige kapitaal om de activiteiten verder uit te breiden”, zegt CEO Melody Harris-Jensbach.
Led by Blackstone, Jack Wolfskin focused a lot on international expansion, which also led to huge debts. However, its financial results, like in the Chinese market, were below expectations. For the current fiscal year, the brand does expect a 30 million euro pre-tax profit.
Blackstone is involved in a lot of companies, like investments in fashion brand Versace and shoe brand Crocs. It also owns the Stadsfeestzaal in Antwerp.
