TAKKO

All,

Rumour has it that Takko is meeting investors. We’ve tried to call the company about it, but have not yet received a response.

This can mean one of two things:

1) The new CEO is introducing himself and is answering investor questions as any new CEO would, or

2) The new CEO is looking for fresh cash ahead of its WC peak - after all interest is payable today...

The latter could turn positive if that capital came in junior somehow if the capital came in subordinated, but he’d be talking to the wrong kind of investors. 

By way of Background, the German apparel and textile industry has had Nov/Dec/Jan YoY sales growth of: +1%/-4%/-3% and mono labels are typically more volatile. To us this suggest that continental retailers as a whole will have struggled to make up for lost sales in Q3. 

So if anything, we are staying short at this time.

Wolfgang