Flying Tiger Copenhagen is closing unprofitable stores after another bad year for the company. At the same time, the owners help the Norwegian company transfer debt.
Danish retailer Flying Tiger Copenhagen, better known as TGR, has struggled in recent years. Stocks are still pointing down for the company.
The annual result was negative at NOK 7.9 million, but still an improvement over the previous year, where the deficit was twice as large.
Since peaking at NOK 246.6 million in 2018, there has only been a decrease in turnover reported for TGR Norge. The company’s turnover was NOK 160.5 million last year, down from NOK 174.6 million in 2020.
Since 2012, the first full fiscal year, things have gone up and the company has turned a profit. But as of 2017, the loss turned out to be approximately NOK 130 million.
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Stores closing
– The company has embarked on certain measures to improve profitability which, among other things, will improve working capital and close some stores, as the calculations indicate.
It also turns out that the focus will be on closing unprofitable stores.
E24 has been in contact with TGR, which did not have the opportunity to comment on the accounts this week.
Already in 2019, the company began closing stores in Norway to improve profitability. There were just over 600 employees in Norway – now the number is 356 as of August, according to figures from Brønnøysund records.
At the end of 2021, the company had 35 stores in Norway.
According to calculations for 2021, the Norwegian company TGR Norge AS has passive equity of NOK 31 million. That’s compared to 23 million in negative equity in 2020.
The company has a short-term debt of NOK 58 million, mostly to the owners. In 2020, this was 85 million NOK.
In order to strengthen the commercial basis for 2022, a debt conversion of approximately NOK 50 million has been made.
– strong position
Flying Tiger has a total of 858 stores in 27 countries around the world. In 2018, there were 990 stores worldwide.
In February 2021, Swedish buyout fund EQT was sold, and Danish investment firm Treville took over.
In the Danish company’s 2021 annual report, Flying Tiger Copenhagen appears to have achieved the best result in eight years. The company’s pre-tax profit was 124 million DKK. In 2020, it was a negative pre-tax result of DKK 1.2 billion.
Our financial results speak for themselves. Our position is strong and the results are rooted in a highly successful strategy, says Martin Germaine, Managing Director of the annual report.
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