The former flagship company from Vorarlberg cannot escape the crisis. The board now wants to implement a “robust restructuring plan” and transform the business model. It’s about pure survival.
Wolford was once an icon of the textile industry in Vorarlberg, but today the company is only languishing. In the first half of 2024, the loss after tax amounted to 24.98 million euros, in the same period of the previous year the loss amounted to 16.11 million euros. Turnover also fell by 26.74 percent from January to June to 43.08 million euros. The reporting period was marked by “significant challenges and transitions”, according to the board, which since the summer has consisted of new CEO Regis Rimbert, Domenico Giordano and COO Ralf Polito.
Falling demand and macroeconomic uncertainties
The company is grappling with declining demand in the luxury segment and macroeconomic uncertainties in key regions. The priority now is to implement a “robust restructuring plan”.
The goal is to optimize the supply chain and inventory management and significantly shorten the time-to-market. It is not just about reducing costs, but a fundamental change in the business model “to ensure Wolford achieves sustainable growth in a rapidly evolving market.” However, no changes to the brand strategy are planned.
After all, the main shareholder, the Chinese Fosun Group, is still willing to contribute additional money. At the beginning of July, Wolford had already received a shareholder loan of one million euros, followed by two more tranches of two million euros each in August and September.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
