The decision of major shareholders of LPP to swap shares is another step on the way to strengthening the family business for generations
The two largest shareholders of LPP, the Semper Simul Foundation and the Sky Foundation, have decided, according to today’s public announcement, to swap their ordinary shares into preferred shares between these entities. In the opinion of the company’s Management Board, this opens yet another stage towards securing the succession of the Polish clothing manufacturer. The actions taken are a guarantee of permanent and stable management of the company and another step on the way to LPP’s growth as a Polish family business for generations.
The decision announced in 2018 by the president and founder of LPP, Marek Piechocki, to concentrate private assets, including the company’s shares, in a family foundation gave rise to the implementation of activities planned for the next few years to ensure the continuity of business operating for nearly 30 years. The decision to swap ordinary shares into preferred shares between the company’s main shareholders is, in the opinion of the Management Board of LPP, in the company’s best interest. It is a confirmation that its stability, in such difficult times for the whole industry, is of paramount importance to its founders.
Under the conditional contract concluded between the shareholders ,the Semper Simul Foundation will dispose of a package of ordinary shares in favour of the Sky Foundation and will purchase a package of registered preference shares from it, thus becoming the majority shareholder of LPP. The intention of the decisions taken by the shareholders is the long-term development of the company and securing its Polish capital.
– The family business character of LPP is a guarantee of predictability and stability of the company’s operations in the long term perspective. Today, in such uncertain and difficult times for us all, it is a value that cannot be overestimated. I am convinced that both our employees, as well as partners and contractors have received today another proof that LPP was, is and will always remain a Polish family business – comments Marek Piechocki, President of the Management Board of LPP, and adds: – Personally, as I have always been responsible for the day-to-day operations of the company, I perceive the decision of the two biggest shareholders of LPP to leave the reins in the hands of one of the founders as an expression of trust and confirmation of the durability of this decision.
In the opinion of the Management Board, the action of the leading shareholders of LPP is not related to the current operations of the company. However, it is a confirmation of durability and stability of the long-term business goals adopted by the company and strengthening of conditions for its development in the years to come. Leaving the responsibility for management and strategic decisions in the hands of one of its two founders is also a guarantee that LPP will remain a Polish company building its capital based on values that have remained unchanged for years, which is reflected in the position of the company on the economic map of Poland.
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LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP plays another important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.