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Rnb Financial Structure

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Submitted By tiffanylv
Words 1443
Pages 6
Fall
13
Fall
13
Professor Bee Lin Yeo
Professor Bee Lin Yeo
Individual Assignment Part II
Tiffany Ling-Vannerus
MANAGERIAL FINANCE
Individual Assignment Part II
Tiffany Ling-Vannerus
MANAGERIAL FINANCE
08
Fall
08
Fall

Table of Contents RNB and the changing market 3 Sustainability issues in focus 4 Sales and Earnings 4 Financial Structure 5 Financial risks 6 Strategic and operational risks 6 Third Quarter, March 1, 2013 – May 31, 2013 6 Outlook 7

It has been an eventful but challenging year for RNB as the market has been characterized by increasing competition from e-commerce players and a continued weak market trend. They managed to secure the Group’s financial platform through a rights issue in the spring, while renegotiating the terms of their loans. Concurrently, they have continued their intensive restructuring efforts. This work has resulted in the sale of Kosta, and the closure of the Sisters concept has been initiated. However, the major activity has been the strategic review of the business concept in JC.
RNB and the changing market
Market conditions during the fiscal year 2012/2013 got even tougher with relatively weak consumer confidence and negative growth for the third consecutive year in comparable stores, with increasingly aggressive offers from e-commerce players, with segment substitution between the sportswear and clothing trade, combined with excessive product supply that is aggressively fighting over shrinking demand with net prices falling as a consequence.
For the Group, the challenges facing the respective concepts are different although they all have the same underlying market and competitive situation. * DSE, the market leader in luxury goods with the NK department stores as a marketplace, displayed a stable performance in terms of sales and earnings. In cosmetics, they are seeing pressure for

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