With its share price down by more than half and its rapid growth halted, the Tom Tailor fashion chain didn’t present a pretty picture to its investors last year.
Dieter Holzer, the company’s chief executive for nine years, now hopes to give them a brighter one with his new plans for tight austerity measures, to be presented together with the company’s 2015 later on Tuesday.
After first mentioning plans to save €10 million, or $11 million, he recently said he intended to reduce costs in 2017 by as much as €20 million. To do this, he planned to cut around 100 administration jobs and close between 80 and 100 of the chain’s 1,500 stores. The Bonita brand, aimed at older customers, would also be axed.
“We are leaving no stone unturned, and are investigating in every store,” Mr. Holzer said. At the same time, he intends to open only 30 new stores – after 132 openings and 41 closures last year.
Mr. Holzer has squandered a lot of trust. Last autumn, he had to revise profit targets because costs were too high. And the Bonita chain, which was acquired in 2012, has not met its high expectations.