The Italian premium sportswear brand Jeckerson signed an agreement with banks in order to restructure its 55 million euro debt, a note by Jeckerson’s legal advisor Latham&Watkins said yesterday. Jeckerson’s financial advisor fort he deal was Equita sim, while Jones Day law firm advised the banks.
Since 2008 Jeckerson had been controlled by private equity firm Stirling Square Capital Partners (71 pct) and the retail and branded luxury goods investment specialist Sirius Equity (29 pct), who bought it out from Blue Fashion Group in a deal that valued Jeckerson 140 million euros, with a 125 equity value .
Established in 1995, Bologna-based Jeckerson is a leading brand in Italy’s sportswear segment and the market leader in men’s premium trousers. Negotiations with banks (GE Capital Interbanca, UniCredit, Mps Capital Services and Banca Mps) have been helding for more than a year and finally got to a final agreement for debt rescheduling and financial covenants revision, while Stirling Square put more equity on the deal.
As far as MF Milan Finanza writes today, new equity amount is still under negotiation but 2012 consolidated financial statements said that last July 25th 2013 Stirling Square Capital undertook to pay 5 million euros in new equity at the signing of an agreement with banks on the debt.
Jeckerson was first in trouble in 2011 when it broke its financial covenants and devaluated its goodwill for 10 million euros. Next in 2012 the fashion brand had a 30.08 negative net result (after a 6,7 millions negative net result in 2011) due to further 30 million euors in goodwill devaluations. In 2012 Jeckerson reached 42.1 million euros in revenues down 15 pct from 50.5 millions in 2011, with a 10.1 millions ebitda (from 15.6 millions in 2011). Net financial debt was 52.5 millions (form 47,8 milions in 2011) but it also has 29,7 millions in vendor loan and contingent vendor loan.
