The embattled Swedish online apparel and footwear retailer's bid for its financial reorganization became final on Nov. 12 as 79.5 percent of its creditors, representing 83.9 percent of the claims, voted in favor of the proposed settlement of their debts.
Brandos will now pay SEK23.5 million (€2.52m-$3.55m) in installments to suppliers whose combined claims amount to SEK94 million (€10.5m-$14.2m). The first 40 percent is to be paid by Dec. 31 this year, 20 percent on March 31, 2014 and the remaining 40 percent by June 30, 2014. A judicial administrator has been appointed by a Swedish district court to ensure that all the creditors receive money in proportion to their share of the liabilities.
Brandos has also recently appointed a new chief executive, David Rönnberg, former CEO of a listed company, Bringwell Supplements. He replaces Karl-Johan Pantzar, who remains on the board along with Fredrik Juto, both of whom were founders of Brandos.
According to an interview with the Swedish newspaper Dagens Industri, Rönnberg acted as an adviser to Brandos in recent months, leading the financially stricken online retailer to reduce the number of employees and to shift the company's focus from aggressive growth to the quest for profitability.
As CEO, Rönnberg has stated that the goal for 2014 is to get the company back on its feet and make it profitable. He said he believes that there will be a sales boom among online clothing retailers in the coming years and a trend to form larger units with higher profit margins. He also hinted at a possible stock market listing. Rönnberg noted that it is easier to get new equity as a listed company and that payments can be made in shares when making acquisitions.
Brandos has been in the midst of a reorganization process to pay outstanding invoices from suppliers and avoid going into bankruptcy proceedings since May.