Funds will be used to cover the company’s payments to suppliers, salaries, taxes to the state budget and social security taxes.
Braiconf factory in Braila manufactures over 800,000 shirts a year for brands such as Braiconf, Eton, Porsche, Cartier, Lacoste, Harmont&Blane, Hermes, Kenzo, LVMH and others.
In the general meeting of April 12, the company’s shareholders approved an investment program of EUR8.7 million to relocate its production and offices to a building newly constructed or an upgraded/renovated building, for the acquisition of equipment and machines. Braiconf also seeks to sell the land in Braila that hosts its current factory and to relocate its production to a new head office.
The company posted a loss of RON4.5 million in 2020, the same as in 2019, and its revenues decreased 14%, to RON36.3 million. In the first quarter of 2021, Braiconf reported a loss of RON825,462 and its turnover dropped 56%, to RON4.3 million.
Braiconf is 42.15% owned by Industries Benjamin and 26% by local household appliances manufacturer Electroarges (ELGS.RO).
The company has a market value of RON18 million and its shares have been trading down 9% since the beginning of 2021.