Top Secret files for bankruptcy
The filing for bankruptcy by the Top Secret clothing chain was announced by the related company Redan.
Redan does not control Top Secret as of 2020, but has the right to buy back its shares over a five-year period and is a major creditor of the company.
Redan’s receivables at the end of July were at PLN 25.1 million. Write-downs of PLN 15 million were created for them. In contrast, PLN 25.1 million was included in the Top Secret arrangement.
The two companies also have a joint agreement at HSBC Continental Europe bank. Under it, Top Secret benefited from a PLN 7.5 million loan.
Redan said that in the short term, Top Secret’s bankruptcy filing will not significantly affect the company’s situation. On the other hand, the company’s long-term outlook will be analyzed and its results presented.
In the first quarter of this year, as much as 85 percent of Redan’s sales revenue and 72 percent of its sales margin came from Top Secret. Redan’s revenues were at a total of PLN 23.14 million.
Top Secret has been in existence since 1995 and is headquartered in Lodz. It designs and distributes clothing. It has more than 170 stores in Poland and employs about a thousand workers.