American Dream of Sunset Suits clothes producer

MAG
11-07-2008, 15:39

Warsaw (Puls Biznesu) – The company which faced bankruptcy in the past will be listed on the Nasdaq at the end of this and beginning of next year.

Sunset Suits, the family company, has been producing and selling suits since 1999. In the years 2000-2004, it had big financial troubles.

“I employed too many people, over 3,000. Besides, several partners failed to pay for the goods and we had big stock of unnecessary clothes and this is how our troubles started”, Miroslaw Kranki, Sunset Suits founded and owner said.

The company was on the verge of bankruptcy. However, its owner came up with the idea to build his own network of shops. The stocks were disappearing quickly, the brand became more popular. Today, the company has 104 shops, including 17 abroad. Last year, the company had PLN 92m (EUR 28.1m) of sales and PLN 7.8m of net income. This year, the results should be slightly better.

The company plans a listing on the stock exchange. Its debut will take place at the end of this and beginning of next year. First, in a month at the latest, Sunset Suits will be listed on OTC. The debut is not a typical one, as the company has decided for a reverse merger. First, Miroslaw Kranik exchanged his shares for the stock of US SMSA III Acquisition Corp whose main shareholder is Halter Financial Group investment bank. The Americans became the owners of 100 percent of Sunset Suits while Miroslaw Kranik became the shareholder of the US firm. Then, Halter Financial Group conducted a private issue and raised USD 16m. The funds were spend to raise the capital of the Polish company. Miroslaw Kranik controls over 49 percent in the US Sunset Suits Holdings. Halter Financial Group has a 10-percent stake. The remaining shares belong to private investors.

The founder of Sunset Suits has been looking for funds for further growth for two years.

“I’ve talked to many Polish institutions but I didn’t get an interesting offer, all of them were not comfortable”, Miroslaw Kranik said.

The funds raised on the Nasdaq will be spent to develop the network in Poland, the Czech Republic, Lithuania, Latvia and Eastland.

 “We want to double the number of shops within 2-3 years”, Miroslaw Kranik added.

(PLN 1 = EUR 0.306)

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