Wolford in the crisis: urgent capital increase after loss of millions!

Wolford in the crisis: urgent capital increase after loss of millions!

Bregenz, Österreich - Wolford, the Bregenz textile company, is in a serious financial crisis and plans a comprehensive capital increase. The share capital is to be almost doubled from 46.3 million to up to 87.3 million euros. This measure is necessary to ensure the long -term future viability of the company that has been struggling with economic difficulties for years. Above all, the latest figures from the 2024 financial year show a worrying decline: sales have fallen by 30 percent to 88.37 million euros, while the loss of 30.8 million euros in 2023 rose to 51.7 million euros in 2024. This can be seen from a report by Vol.at out.

The capital increase is to take place between May 22nd and June 5, 2025 and includes the issue of up to 8.5 million new shares at a price of 4.80 euros each. The board of directors set the reference period on Monday, and the shareholders had already approved the increase in share capital at the Annual General Meeting in December 2024. These drastic measures have become necessary, since at the end of December 2024 equity with minus 88.4 million euros and an equity ratio of minus 89.9 percent was burdened.

The causes of the financial difficulties

Wolford faces challenges through a declining demand in the luxury segment, macroeconomic uncertainties and logistical disorders. These external factors have tightened the already tense situation and led to operational and organizational disorders in various areas of the value chain. Liquidity problems were partially alleviated by loans from the majority shareholder, Fosun Fashion Group Wisdom, in the amount of 29.05 million euros. This holds 61 percent of the shares, while German private investor Ralph Bartel has around 30 percent and Wolford AG has less than 1 percent of the shares.

The company's stock market is also negative in view of these developments, on Monday Wolford had to accept a price loss of 5.71 percent on the Viennese stock exchange. The market situation is challenging for the textile industry, such as an analysis by Mordor Intelligence . The market experienced a dramatic decline through the Covid 19 pandemic in 2020 and has only slowly recovered.

The perspectives for the future

For Wolford, the signs are currently not on profitability. No positive development in the operational result (EBIT) is expected in the current financial year. The company's focus focuses on restoring operational business and increases in efficiency. Analysts, however, emphasize the long -term growth trends in the global textile industry, which is due to grow by 2029, with an estimated market size of over 920 billion

Wolford remains under pressure in view of these circumstances, but may have to hope for a positive redesign of his business strategy in order to get out of this deep crisis. It remains to be seen whether the planned capital increase can bring the desired result.