An icy wind is still blowing against the Vorarlberg textile giant Wolford. Although there was an increase in turnover in the first half of 2022, the loss also increased.
The Bregenz laundry group was once one of the flagships of the Vorarlberg economy, the products were in high demand and there was a Wolford store in the best addresses in the world – from New York to Paris. But those times are long gone, the present of the traditional company, now majority belonging to China’s Fusun Group, is extremely bleak.
Chief Operation Officer (COO) Andrew Thorndike, who was responsible for product development, human resources management and finance on the two-man board, only threw in the towel in July and was succeeded on an interim basis by Paul Kotrba. The latter was able to practice packaging negative news when presenting the half-yearly balance sheet. Indeed, the group managed to significantly increase its turnover in the first six months of 2022 compared to the same period last year – by a remarkable 29.4 percent to 54.3 million euros.
At the same time, however, the operating loss (EBIT) also exploded: the total came to minus 16.9 million euros – 2.1 million euros more than in the first half of 2021. The management blamed the rising prices for fabrics , paper, energy and logistics and collective wage increases. In view of the not-too-pleasant general economic situation, it is not expected that the profit situation will improve in the current financial year.
Majority shareholder injects capital:
After all, economic survival seems assured for the time being. The Chinese majority shareholder again provided a loan to ensure liquidity. In addition, according to the company’s management, they are in close contact with various banks to ensure further financing.
Overall, the board duo has worked very hard to paint an optimistic picture of the future: the trend is good and they are confident that they will significantly exceed the previous year’s sales. However, it may be a long way before Wolford is finally back in the black.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
