OpCapita agrees €20m buyout of troubled German clothing company NKD


clothing-scarves-2European turnaround private equity investor OpCapita has agreed to buy troubled German discount clothing retailer NKD for an initial investment of €20m.

OpCapita will inject new capital into the business as part of the deal, which it said would happen once it has closed a new equity fund it is currently raising.

The firm said the buyout was being financed without bank credit, adding that it had beaten off competition from several other suitors because NKD believed it offered the best solution to turnaround the business.

NKD has been restructuring under consultancy Ziems und Partner, and is due to complete a store closure program shortly.

OpCapita operating partner John von Spreckelsen will be appointed senior shareholder representative and support NKD’s current management team to implement their growth plan.

He said, “We have followed NKD for a number of years and are pleased to acquire the business. Its loyal customers appreciate NKD’s emphasis on quality and value.

“With the active support of NKD’s employees, we are confident that our investment will enable the company to return to sustainable growth over the medium term.”

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