Funding for home improvement chain practitioner stands

funding for home improvement chain practitioner stands

"With this package deal, we have largely achieved a breakthrough in the financing of our restructuring program," explained the chairman of the management board, kay hafner.

The core of the financing is a loan of over 40 million euros from a group of investors advised by the austrian private bank semper constantia. The capital is to be available immediately. "Although the volume of loans is somewhat lower than originally targeted. But the conditions (…) more favorable than what we had to pay to the international fund company," explained chief financial officer markus schurholz. Credit negotiations with the U.S. Fund anchorage had previously failed due to differing ideas about conditions.

In addition, a bank commitment of 20 million euros had extended an existing credit line of 40 million euros for three years. In addition, the trade credit insurers are prepared to make commitments. The company announced that a loan of 15 million euros was the last building block to be secured, and at the same time expressed optimism that this could be concluded in the short term.

The austrian private bank semper constantia and the cypriot fund mazeltov together hold 15 percent of praktiker and have been fighting for months against a financing model of anchorage. The austrian investor isabella de krassny, as spokeswoman for the major shareholders, had stressed several times that she considered it too expensive.

According to the company, the implementation of the restructuring concept could not be achieved without loans and a capital increase of 60 million euros. Praktiker had maneuvered itself into a severe crisis through a low-price strategy (20 percent on everything, auber pet food) and now wants to reflag more than half of its 234 stores to the profitable group subsidiary max bahr. So far, 14 markets are being rebuilt, which will take about four weeks; the first new max bahr markets are scheduled to open on 27. September to be opened.