More than 7000 affected by Tom Tailor closures

About 7000 employees will be affected by the closure of up to 300 Tom Tailor and Bonita stores

Olten, 1 February 2017. More than 7000 people who are currently employed in the corporation are likely to be affected by the closing of 300 Tom Tailor and Bonita branches.

Tom Tailor founder Uwe Schröder said that up to 300 stores had to be closed and employees were to be released. The brand Tom Tailor also includes Bonita. Alone, 70 shops of Bonita Man are to be closed – which means that the brand disappears completely from the market. However, Bonita Woman loses only 150 stores and remains active. “The constantly changing customer preferences have led to the decision that the company wants to focus on its core brand, because that is the robust core”, said Interim Chairman of the Board of Management Heiko Schäfer. It is now also evident that the German label Tom Tailor will feel the effects. Not even large Tom Tailor stores are exempted. The management will base their decision in the very near future based on how profitable the stores are.

As a result there is great uncertainty among the roughly 7000 employees in the Group. Who is affected by the closures and how is it going to continue? The management of Tom Tailor hopes to deliver results as quickly as possible.

The Tom Tailor Group expects to significantly improve its profitability in fiscal year 2017 and achieve a significantly higher reported EBITDA (Earnings before interests, taxes, depreciation and amortization) margin. The Management Board also expects to be able to reduce the debt level of the company more quickly than was previously the case. Furthermore, the Management Board expects the forecast for the current financial year 2016, which was issued in March. An updated forecast for the current fiscal year will be presented with the publication of the third quarter report on 10 November 2016.

Author: Emran Nain

Edited by Kristiana Basic

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