CR 16/ 2020 Implementation of remedial actions in respect of LPP Deutschland GmbH, a subsidiary – declassification of delayed inside information

Implementation of remedial actions in respect of LPP Deutschland GmbH, a subsidiary – declassification of delayed inside information

 

Current report no: 16/2020

Date: 10 June 2020

Time: 9:25 am

 

The Management Board of LPP SA with its registered office in Gdańsk (the Company) informs that, on 5 June 2020, it approved the decision of the governing body of its one-member subsidiary LPP Deutschland GmbH, adopted also on 5 June 2020, on the intention to undertake activities aimed at improving the said company’s standing and its remedial restructuring. To that end, on 8 June 2020, the governing body of LPP Deutschland GmbH filed, with a competent court in Hamburg, the application for granting consent for the undertaking by LPP Deutschland GmbH of remedial actions and having the company temporarily protected against its creditors in accordance with section 270b of the Insolvency Law in the territory of Germany. In the late afternoon of 9 June 2020, the court in Hamburg issued the decision on the granting of consent for the implementation of remedial actions in the form of a legal procedure encompassing protection against creditors of that subsidiary i.e. the so-called Protective Shield Procedure (Schutzschirmverfahren).

These actions are aimed at improving the standing and remedial restructuring of LPP Deutschland GmbH, which sells goods of the LPP SA Group in the territory of Germany. The company operates 19 traditional stores in Germany, employing approx. 500 people, with Germany being, in terms of sales volume, the sixth market for the LPP SA Group. In 2019, LPP Deutschland GmbH generated revenue of approx. PLN 350 mln. The company’s standing has been affected by the negative consequences of the COVID-19 pandemic, involving store closure in the territory of Germany and a decrease in sales after stores reopened.

In the procedure in question, the main goal of LPP Deutschland GmbH is the negotiation with lessors of new terms and conditions of contracts under which the company uses retail premises and, therefore, ensuring profitability of the company’s operations. As part of the said procedure, for three months, LPP Deutschland GmbH will be protected against its creditors and pursue operations under the supervision of persons appointed by the court in Hamburg. The company’s current governing body will remain on office. In the said period, the company will still manage its assets, being supervised by an administrator appointed by the court, and will also be supported by an external restructuring manager. Furthermore, the creditors council will be appointed to represent creditors against the company and the administrator. In the said period, LPP Deutschland GmbH will be protected against any potential enforcement actions undertaken by creditors.

If, during the three-month period, the German company finally amends contractual terms and conditions, it will be able to reinstate its current operations. Should the company fail to reach that goal, it might be required to implement further restructuring procedures as provided for in German law, including in particular the insolvency procedure under German law (the so-called preliminary insolvency procedure – vorläufiges Insolvenzverfahren or “full” insolvency procedure – Insolvenzeröffnungsverfahren).

At the same time, the Management Board of LPP SA informs that, with a view to protecting the interests of LPP Deutschland GmbH and, therefore, LPP SA and its shareholders by, inter alia, ensuring unhindered implementation of the remedial procedure, the Company decided to delay disclosure to the public of the information on, respectively, the adoption and approval on 5 June 2020 by the Management Board of LPP Deutschland GmbH and the Management Board of LPP SA of the decision on the intended submission on 8 June 2020 to the Court of the application in the case in question [the Decision]. The Company clarifies that, in the opinion of its Management Board, immediate disclosure to the public of the above-mentioned information on the Decision on the date of its adoption would give rise to the risk of occurrence of events recognised as negative in terms of the procedure in question before issuance by the Court of the decision, referred to above, by virtue of which LPP Deutschland GmbH has been legally protected. Today’s disclosure to the public of the Decision is related to the expiry on 9 June 2020 of prerequisites set forth in Article 17(4) MAR, justifying a possible delay in public disclosure of inside information in connection with the issuance by the court in Hamburg of the decision on the granting of consent for implementation of remedial actions. Simultaneously, the Issuer informs that the information provided in this report exhausts the content of the above-mentioned delayed inside information.

 

CR 16 2020 – Implementation of remedial actions in respect of LPP Deutschland GmbH, a subsidiary – declassification of delayed inside information

CR 15/2020 Selected preliminary consolidated financial data of LPP Group for the first quarter of 2020/21  

Selected preliminary consolidated financial data of LPP Group for the first quarter of 2020/21                                                                                                                                           

Current Report No. 15/2020

Date: 04.05.2020, 5:06 pm

 

The Management Board of LPP SA presents in the annex hereto the selected preliminary consolidated financial data of LPP Group for the first quarter of 2020/21 (February – April 2020).

 

CR 15 2020 – Selected preliminary consolidated financial data of LPP Group for the first quarter of 2020-21

Attachment CR 15 2020 – Selected preliminary consolidated financial data of LPP Group for the first quarter of 2020-21

CR 14/2020 Adoption by the Management Board of LPP SA of the decision to renounce part of agreements on the lease of retail space in the territory of the Republic of Poland – declassification of delayed inside information

Adoption by the Management Board of LPP SA of the decision to renounce part of agreements on the lease of retail space in the territory of the Republic of Poland – declassification of delayed inside information


Current report no: 14/2020

Date: 30 April 2020

Time: 8:27

 

The Management Board of LPP SA with its registered office in Gdańsk (the Company) informs that, on 29 April 2020, in the best interest of the Company and all of its stakeholders, i.e. shareholders, employees and contracting parties, it made a decision on the renouncement of part of agreements on the use of retail space, concluded with owners of shopping centres located in the territory of the Republic of Poland and, as of the same date, the Company initiated the procedure of formal delivery of relevant statements to individual lessors. The Company will renounce agreements on the use of retail space constituting approx. 29.5% of the total number of square metres of retail space utilised by the LPP SA Group. In consideration of the existing circumstances caused by the COVID-19 pandemic, the agreements in question may not, on a permanent-basis, be performed on the terms and conditions applicable so far, which justifies the exercise by LPP of its rights.

At the same time, LPP expresses its willingness to hold talks with shopping centres on new agreements incorporating terms and conditions adequate to the new circumstances. The Management Board aims at adapting the conditions of sale using retail space in shopping centres to the unprecedented change in economic and social relations, caused by COVID-19 as well as trading bans and restrictions introduced by the government of the Republic of Poland. For obvious reasons, the annulment of the trading ban does not mitigate the risk of consumers’ long-term loss of interest in visiting and shopping in shopping centres, which will, on a long-term basis, adversely affect revenue levels in this sales channel after the ban is lifted. Due to the expected restrictions involving installation in chopping centres of thermal cameras with temperature monitoring and consumer segregation into different risk groups (red, yellow and green), COVID-19 risk warnings made using the megaphone system, the requirement to shop wearing masks and rubber gloves limiting free touching and trying of goods and limitation of customers’ number in a store and the shopping centre, treading reality will be totally different. From the legal perspective, the above justifies the renouncement of current agreements, necessitating a deep change of the business model of stores operating in shopping centres and shopping centres themselves and determination of new terms and conditions for prospective cooperation.

Simultaneously, the Company’s Management Board informs that, due to the extension in time of the procedure for drafting and delivering to owners of specific shopping centres of statements on the renouncement of lease agreements, the Company has made the decision to delay public disclosure of the above-mentioned information on the decision made by the Company’s Management Board. The Company clarifies that, in the opinion of the Company’s Management Board, immediate public disclosure of the above-mentioned inside information on the date of its occurrence would give rise to the risk involving the hindering by owners of shopping centres of effective delivery of statements on the renouncement of agreements, which would substantially obstruct the procedure in terms of effectiveness of such renouncement from the moment of delivery of a statement to that effect to an addressee. Disclosure of information on the decision of the Management Board, made in respect of renouncement of lease agreements, before delivery of relevant statements to that effect to owners of shopping centres would, therefore, adversely affect the effectiveness of statements made, which, in consequence, could violate legally justified interests of the Issuer and, consequently, the interests of its shareholders. Today’s public disclosure of the information on the decision of the Company’s Management Board is related to the fact that, on 30 April 2020, the prerequisites set for Article 17(4) MAR, justifying the possibility of delaying the public disclosure of inside information, ceased to exist. At the same time, the Issuer informs that information provided for in this report exhausts the content of the above-mentioned delayed inside information.

 

CR 14 2020 – Adoption by the Management Board of LPP SA of the decision to renounce part of agreements on the lease of r

 

CR 13/2020 Update on the effects of the COVID-19 coronavirus outbreak on the operations of LPP Group

Update on the effects of the COVID-19 coronavirus outbreak on the operations of LPP Group


Current report no: 13/2020

Date: 15 April 2020

Hour: 1.43 pm

 

In connection with CR 6/2020 published on 15 March 2020, providing information on the effects of the COVID-19 coronavirus on the operations of the LPP SA Group, the Management Board of LPP SA (the Issuer) updates the said information as at 15 April 2020.

The Issuer recognises the highest risk arising from the effects of COVID-19 for the sale of goods.

Following decisions made by governments of the countries in which the Group operates its traditional stores, in 21 countries out of 25, traditional stores of all LPP brands have been closed.

The implemented restrictions concerning the operation of commercial facilities will adversely affect the Group’s sales and financial results.

At the same time, in 30 countries, online stores operate with no trading restrictions, generating high sales increases.

Risk relating to the supply chain is recognised by the Issuer as low.

Plants in China, Cambodia and Myanmar pursue standard operations. Plants in Bangladesh and India remain closed, while in Turkey and Pakistan production has been limited.

Simultaneously, warehouses in Poland, Russia and Romania accept goods and make dispatches to online stores.

Currently, the Company has stocks of goods worth approx. PLN 2 bln, comprising solely clothes from 2020 Spring/Summer collections.

The Company’s Management Board has undertaken numerous actions to maintain its strong liquidity position:

– on the revenues part: actions aimed at the dynamic development of e-commerce;

– on the costs part: reduction of store and head office costs (benefitting from the assistance of the Polish government as part of the anti-crisis shield involving rent-free periods for the duration of store closure and governmental support for payroll costs);

– on the expenditures part: reduction of orders for Autumn/Winter 2020, reduction of capital expenditures for 2020/21 to PLN 500 mln (limited number of new stores to be opened in 2020/21, i.e. the Company plans to increase space by 10% y/y, postpone in time investments involving the construction of head offices and the distribution centre in Brześć) and recommend non-payment of a dividend.

As at 15 April 2020, the Issuer expects that the effects of the COVID-19 pandemic will substantially affect the Group’s future results and operations. However, due to uncertainty, dynamics and prevalence of factors beyond the Issuer’s control, as the date of this report, such impact still remains impossible to be estimated.

Any new circumstances substantially affecting financial results generated by the Issuer and its economic standing will be communicated without delay in separate current or periodical reports.

 

CR 13 2020 – Update on the effects of the COVID-19 coronavirus outbreak on the operations of LPP Group

CR 12/2020 Information on the remuneration of the Management Board of LPP SA   

Information on the remuneration of the Management Board of LPP SA    
Current report no: 12/2020

Date: 31 March 2020

Time: 12:31  pm

 

The Management Board of LPP SA informs that, in consideration of the difficult economic situation in global economy and hardly foreseeable perspectives of eliminating the effects of the pandemic-related crisis, starting from April 2020, all members of the Management  Board of LPP SA consented to decreasing their remunerations to a symbolic amount of PLN 1. This remuneration decrease will apply until the Management Board of LPP SA recognises that the Company’s financial standing is safe and foreseeable.

 

CR 12 2020 – Information on the remuneration of the Management Board of LPP SA

CR 11/2020 Dividend information   

Dividend information   


Current report no: 11/2020

Date: 30 March 2020

Time: 5:06 pm

 

The Management Board of LPP SA with its registered office in Gdańsk informs that, on 30 March 2020, the Board adopted a resolution in which it decided to recommend to the Supervisory Board of LPP SA and the Ordinary Meeting of Shareholders of  LPP SA that a dividend for the financial year ended on 31 January 2020 should not be paid.

In its decision, the Company’s Management Board focuses on the well-being of its employees and its intention to preserve workplaces and ensure the Company’s financial liquidity in the current difficult market situation caused by the COVID-19 coronavirus epidemic.

The above-mentioned application will be delivered to the Supervisory Board of LPP SA for opinion purposes as required under § 33(3) of the Company’s Articles of Association and Article 382(3) of the Commercial Companies Code and presented for consideration by the Ordinary General Meeting of Shareholders as required under Article 395(2)(2) of the Commercial Companies Code and § 33(1)(3) of the Articles of Association of LPP SA.

 

CR 11 2020 -Dividend information