The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Clothing retailers, including department stores, have raised $36 billion from banks to help weather store closures and lost revenues during the coronavirus pandemic.
German apparel brand Hugo Boss AG has joined more than 100 similar companies from Europe and US in seeking financing support. Boss has drawn down part of its existing credit line, borrowed additional funds supported by government-owned bank KfW, and asked to waive financial covenants under its loan agreement, according to its second-quarter report on Tuesday.
More than 20 firms including Columbia Sportswear Co, Next Plc and Tiffany & Co have asked to waive or amend covenants under their loan agreements to give themselves more financial headroom. Columbia requested to waive the funded debt and interest coverage ratio covenants for this year, according to a filing.
A rising number of companies from the sector are facing distress. The UK’s DW Sports filed for administration while Tailored Brands of the US filed for Chapter 11 over the weekend.