Palmers finds things tight due to Lejaby takeover
Austrian lingerie manufacturer Palmers has warned it will try to withdraw the takeover of rival Lejaby amid suspicions its previous owner gave wrong information about its finances.Palmers boss Thomas Weber told business magazine Trend his firm was considering approaching US American Warnaco Group to discuss chances for a retroactive reduction of the takeover price of 45 million Euros.Palmers took over France firm Lejaby in 2008 and the companys bad economic state is still affecting the Austrian lingerie producers performance.Palmers, which has its headquarters in Wiener Neudorf south of Vienna, said today (Weds) its Palmers Lejaby Holding GmbH suffered losses of five million Euros in the 2009/2010. Palmers added that it nevertheless managed to achieve a turnover of 170.8 million Euros at the same time, up from 161.6 million Euros in the previous business year.Palmers consists of 19 affiliated companies. It is known internationally for various poster campaigns regarded as daring and offending by some.Revelations that Palmers is still suffering from the ill-fated acquisition of Lejaby come on the heels of news that Victoria’s Secret will set up a showroom in Vienna. Austrian magazine Format recently reported the American lingerie producer has plans to open its representation in Austria next month.