The Redan company was established in 1995 in Łódź. It operates in the clothing industry. It was the owner of a chain shops Top Secret, but due to financial problems, among other reasons, it sold the rights to the brand earlier this year. Money The company was supposed to use the proceeds from the sale of Top Secret to repay credit.
Redan has big financial problems
The company still operates in the industry, but focuses on logistics services. However, this step did not solve all of the company's problems. “The actions taken to change the scope of the Company's business to the provision of logistics services did not result in the conclusion of contracts on the basis of which sales revenues would be generated at a level that would cover the costs of current operations and the possibility of timely servicing other liabilities,” we read in announcement published by Redan.
The company informed investors that Redan “decided to prepare the financial statements without taking into account the principle of going concern, considering that the factors influencing the risk of not being able to continue the business outweigh the factors supporting its continuation.” The turning point was given as the time of the coronavirus epidemic, when the company lost profitability and never regained it.
Group layoffs in a Łódź company
Financial problems have pushed the company to layoffs. Redan employs 60 workers, 16 of whom have already received notice of termination of employment contracts. Notified District Office Work in Łódź about the intention to carry out group layoffs. Up to 20 more employees are to lose their jobs soon. The group layoff process is to take place from September 30 to November 30.