The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — Vivarte SAS won a waiver to terms of a 535 million-euro ($596 million) loan after terror attacks in Paris and warm winter weather hurt the French fashion retailer's earnings late last year, according to two people familiar with the matter.
Lenders agreed to extend until November a waiver on quarterly minimum-earnings tests in order to avoid breaching loan covenants, said the people, who asked not to be identified because the matter is private. The amendment was passed by 99.2 percent of voters, who represented 78 percent of the total pool of lenders, the people said.
Vivarte, which owns brands including Kookai and Naf Naf, suffered a 15 percent drop in like-for-like sales in November amid the fallout from the terrorist attacks and a spell of warmer weather, a person familiar with the matter said last week. The company in 2014 was taken over by creditors who agreed to restructure 2.8 billion euros of loans after France’s sluggish economy and high unemployment took its toll on earnings.
An official at the Paris-based company declined to comment on the loan waiver.
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The request extends an amendment agreed to in December 2014 and which was due to expire this month, a person familiar with the matter said last week. The so-called super-senior loan was obtained after the restructuring.
By Edith Fishta, with assistance from Sally Bakewell; editors: Shelley Smith, Mark McCord, Neil Denslow.
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