"Liquid funds used up": Takko applies for a NRW state guarantee

"Liquid funds used up"
Takko applies for a NRW state guarantee

The textile discounter Takko is running out of air in the recent lockdown. A guarantee from the state of North Rhine-Westphalia should now give the company some air. It is said that one is healthy and confident that the aid can be repaid quickly.

In view of the renewed Corona lockdown, the textile discounter Takko has applied for a guarantee from the state of North Rhine-Westphalia for a bridging loan. The loan is in the mid double-digit million range, said interim CEO Karl-Heinz Holland. With more than 1900 branches in 17 countries, Takko is one of the largest fashion chain stores in Europe. The company, based in Telgte in the Münsterland region, employs 18,000 people, including around 14,000 in Germany.

"Takko is a healthy company, but after almost three months of lockdown we need that support," said Holland. The liquid funds available at the beginning of the new business closings have been used up. Takko needs the guarantee "as soon as possible" to secure jobs. Takko has no claim to funds from Bridging Aid III, as the turnover is above the limit of 750 million euros. "Apart from the short-time work allowance for our employees, there has so far been no help," said Holland.

Since the beginning of the Corona crisis, a number of well-known German fashion retailers have got into trouble and had to seek rescue in insolvency proceedings. At Takko, the situation is not comparable, said Holland. 2019 was the most economically successful financial year in ten years. Even after the first lockdown with business closings in spring 2020, Takko "had an extremely strong second half of 2020". Takko is therefore confident that he will be able to repay government funds quickly.

Takko is well positioned for the time after the lockdown, said Holland. Since the majority of the Takko branches are close to food discounters such as Lidl and Aldi or drugstores, they are also not affected by the lower footfall in the city centers. The former Lidl manager Holland temporarily took over the management of Takko at the beginning of the year. The former head of Sport Scheck, Markus Rech, will take over his duties in April.