Takko Fashion positioned for growth with new long-term capital structure

• Takko Fashion, jointly with its shareholder, Funds advised by Apax, bondholders, and banks agreed to a new capital structure that will materially reduce leverage by more than €250 million and extend debt maturities until 2026
• Management continues to focus on providing quality fashion at discount prices across Europe
• As part of the transaction, a majority of the shares in the Company will transfer to Takko Fashion’s existing bondholders

Takko Fashion, one of the leading European fashion discounters, today announced that it has entered into an agreement with Funds advised by Apax, its bondholders and banks to secure a new, right sized capital structure. This will allow for the substantial reduction of debt resulting in a strengthened financial profile and extend the debt maturity, enabling Takko Fashion to continue to successfully execute on its growth strategy.

During its 40 years history, Takko Fashion has become a leading European fashion discounter with stores in 17 countries. Despite a challenging macroeconomic climate, marked by persistent inflation and uncertainty, Takko Fashion enjoys strong customer demand across its European markets. Combined with its long-standing supplier relationships and sustainability standards, Takko Fashion is ideally positioned to expand its presence across Europe, including through new store openings as well as the extension of the online shop. In addition, Takko Fashion will focus on its digital transformation journey to enable enhanced processes and an improved customer experience.

Tjeerd Jegen, CEO of Takko Fashion: “We are looking forward to welcoming our new shareholders, whose experience in the industry will allow us to further strengthen our business across Europe. Takko Fashion’s discount model has again and again proven its strength, resilience, and potential and I would like to thank Apax for their support over the past few years. Through the improved debt position and new capital structure we will be able to invest in the future of the company and accelerate our efforts to deliver on our strategic priorities.”  

Takko Fashion was advised by PJT Partners (Financial Advisor), Gleiss Lutz and Simpson Thacher & Bartlett LLP (Legal Advisors).

The transaction is subject to certain closing conditions and customary regulatory approvals.

About Takko Fashion

Takko Fashion owns and operates almost 2,000 discount stores in 17 countries across Europe. In online as well as offline sales, the company offers quality fashion collections at an attractive price. As a member of the Fair Wear Foundation, the Partnership for Sustainable Textiles, and as a partner of the Better Cotton Initiative, Takko Fashion is committed to sustainable and responsible production conditions as well as improve cotton farming globally.

Investor contact
Investor.relations@takko.de

Media contact
Franca Volpert (Kekst CNC)
M +49 152 248 733 72
takko@kekstcnc.com

Disclaimer

This press release is not an offer of securities for sale in the United States and no such securities may be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States would be made by means of a prospectus and would contain detailed information about the company and management, as well as financial statements. This press release may include "forward-looking statements." These statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "probability," "risk," "target," "goal," "objective," "expects," "intends," "projects," "plans," "may," "will" or "should" or, in each case, their negative other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They include statements regarding the intentions, beliefs or current expectations of Takko Fashion S.à r.l., formerly Salsa Retail Holding DebtCo 1 S.à r.l. (the "Company"), Takko Luxembourg 2 S.C.A. and Takko Fashion GmbH (together with their respective subsidiaries, "Takko") concerning, among other things, Takko’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. Any forward-looking statements which the Company, Takko Luxembourg 2 S.C.A. or Takko Fashion GmbH make in this press release speak only as of the date of such statement. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Takko or its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. We caution you not to place undue reliance on any forward-looking statements. The Company, Takko Luxembourg 2 S.C.A. and Takko Fashion GmbH do not intend, and undertake no obligation, to revise the forward-looking statements included in this press release to reflect any future events or circumstances, except as required by law.