The clothing company Top Secret has filed for bankruptcy. According to the brand owner, Redan, this decision will not affect the company’s operations in the short term.
Top Secret, a chain of clothing stores operating in Poland for over 25 years, has filed for bankruptcy. The management board of the company Redan, to which the brand belongs, informed about this decision, stating that “on the basis of an analysis of announcements made in the Public Portal of the National Register of Debtors, it learned about the submission by Top Secret Sp. z o. o. with its seat in Łódź of a bankruptcy petition ”.
According to a statement published by Redan, Top Secret is indebted to the brand owner in the amount of PLN 25.1 million – as at the end of July this year. In addition, Redan and Top Secret are co-borrowers in the loan agreement concluded with HSBC Continental Europe, under which the clothing brand used PLN 7.5 million.
At the same time, the management of Redan indicated that “in the short term, the filing of a bankruptcy petition by TS (Top Secret – ed.) Will not have a significant impact on the Company’s situation, including, in particular, its sales levels, margins and cash flows.” The impact of a possible bankruptcy may be felt in the long run, which “requires in-depth analysis”.
– In particular, it is necessary to consider the valuation of receivables from TS and the risk of having to repay the loan for TS, as mentioned above. After conducting this analysis, Redan’s management board will present its results and the conclusions drawn from it – we can read in the company’s stock exchange announcement.
Top Secret has over 160 stores in Poland. According to the data from the beginning of this year, the company employed nearly a thousand employees.