- The Management Board of Redan S.A. announced that due to the ongoing work on the financial statements for the half-year period ended on June 30, 2024, it decided to prepare the statements assuming no going concern.
- In recent years, as well as in the intermediate periods, the company has consistently indicated factors generating uncertainty regarding its ability to continue as a going concern.
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Redan in new hands. Transaction worth PLN 11 to 14 million
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Redan: Our goal remains the development of logistics services for external recipients
Redan sold trademark rights
Since the outbreak of the SARS-CoV-2 coronavirus epidemic, Redan has not achieved sustainable profitability in its clothing trading business, despite its co-financing by the company's shareholders in 2020. At the same time, Redan's receivables from the company conducting retail sale of "Top Secret" brand goods in Poland and liabilities to entities importing goods have been increasing.
As a result, Redan took steps to sell the trademark rights on the one hand, and to change the business profile to providing logistics services on the other.
In 2024, the transaction of sale of protective rights to trademarks was completed. Redan made a conditional sale of assets related to running the "Top Secret" brand business, "DryWash" and the license agreement.
The value of the transaction was set at PLN 11 to 14 million. It provides the possibility of repaying the bank loan, which is secured by a registered pledge on these rights. The loan will be repaid in the second half of 2025.
Top Secret filed for bankruptcy in August 2022. Redan earned PLN 94.3 million in revenue and PLN 0.7 million in net profit for 2022. The company's revenue in 2023 fell by 29% to PLN 67.4 million, with a net loss of PLN 2.3 million.
Redan has changed its business profile, but it still does not earn money
The actions taken to change the company’s scope of activity to the provision of logistics services did not result in the conclusion of contracts that would generate sales revenues at a level that would cover the costs of current operations and enable timely servicing of the company’s other liabilities.
– Therefore, the management board of Redan decided to prepare the financial statements without taking into account the principle of going concern, taking into account that the factors influencing the risk of inability to continue the business outweigh the factors in favor of its continuation – the company said in a press release.
Redan announces mass layoffs
In addition, on August 29 this year, the Redan management board adopted a resolution on the intention to conduct group layoffs. The company informed employee representatives about the reasons for the intended group layoff, conducted a consultation procedure on this matter and notified the District Labor Office in Łódź of this fact,
The mass layoffs will be carried out between 30 September 2024 and 30 November 2024 and will affect a maximum of 20 employees. Redan currently employs 60 employees, of whom 16 received notices of termination of employment contracts in the preceding months.
Redan was founded in 1995 in Łódź. From the very beginning, it has been providing logistics services for clothing industry contractors. Currently, it services the fashion brand Top Secret. On its behalf, the company runs the entire supply chain (organizing transport from suppliers, storing in the warehouse, performing customs clearance, packaging for shipment to stores or customers) and sells Top Secret products to foreign customers.