BERLIN (BRAIN) — E-commerce giant Signa Sports United says it is taking legal steps after a holding company terminated a 150 million euro equity commitment. The company — which owns the Nukeproof and Vitus bike brands as well as several bike e-commerce retailers and a wholesale business — announced earlier this month that it was restructuring in the face of falling sales and liquidity challenges, especially in the bike market.
Representatives from the company's U.S. offices were unavailable for comment to BRAIN.
The company said earlier this month would ask the NYSE to delist its stock, explaining that the commitment to comply with public trading regulations was more trouble than it was worth. NYSE announced on Oct. 11 that it was beginning the delisting process.
The company said Monday that its largest shareholder, SIGNA International Holding GmbH had terminated its equity commitment letter, which according to Signa was an "unconditional commitment from the affiliate to provide the 150 million euro liquidity from Sept. 1, 2023 to Sept. 30, 2025. It said of the original commitment, 143 million euros remain undrawn.
"After many years of mutually trusted collaboration and reliable financing between the Company and SIGNA Holding, SSU has relied on the binding and unconditional nature of the Equity Commitment Letter to continue to draw funds to meet its near-term obligations and for its going concern assessment of the Company and its subsidiaries. The Company considers the termination of the Equity Commitment Letter by SIGNA Holding unjustified," SSU said in a statement.
It said "it will take the appropriate legal steps in the interests of all its shareholders, creditors and employees."
SSU has more than 80 online sites and partners with 500 shops serving over 6 million customers worldwide. It includes Tennis-Point, WiggleCRC, Fahrrad.de, Bikester, Probikeshop, Campz, Addnature and TennisPro.
