The Redan Management Board decided to commence a review of strategic options to support further growth of the Group’s operations. The purpose of the review is to select the best way to achieve the Group’s long-term goal, which is ensuring its growth and maximise value for the existing and future shareholders.
At the current stage of the review, the Redan Management Board will consider certain modifications in the structure of the Company’s statement of financial position, including the exclusion from the Group’s structure of the discount segment organised within the subsidiary TXM S.A., in whole or in part, including by disposal or spin-off of the business from the Group, in order to reduce its impact on the Group’s consolidated financial statements. The main reason for the review is the need to provide financing for the fashion segment, which is difficult as the Group’s consolidated financial statements are adversely affected by the performance of TXM S.A.
“Our assessment of TXM’s growth prospects remains unchanged. The discount segment has consistently improved its margin and reduced costs. We still believe in the segment’s great potential to ramp up sales and improve its financial performance. Nonetheless, our overriding objective is to provide financing for the Top Secret fashion segment, which is difficult as the Redan Group’s consolidated financial statements are adversely affected by TXM’s performance. That is why we are looking for a way to exclude our interest in the subsidiary from the consolidated financial statements. In the long term, we still wish to have control of TXM,” said Bogusz Kruszyński, the President of the Management Board of Redan S.A.
The Redan Management Board will also review and consider other strategic options as may arise in the process. No specific option has been selected yet and it is uncertain whether and when such a decision will be made in the future.