It is good that EKF helps to secure credit for the retail business. Without EKF Change would not have obtained all the required leasing agreements and we would have been forced to revise our growth strategy.
In the beginning of 2012 the Danish clothing company Change Lingerie planned to open 8 new stores in Norway as well as a new store in Sweden and one in Germany.
During the past few years Change has been expanding and establishing many new stores in among others Scandinavia, Germany and Spain and with the new stores in Norway, Change would reach a total number of approximately 150 stores. The aim was to increase the company´s revenue to secure the continuous growth of the company.
”The Norwegian market has got potential as the consumers do not show restrain as in many other markets. Our ambition is to become a nationwide chain in Norway,” says Claus Walther Jensen, CEO of Change.
Change typically rents the stores but invests about DKK 600,000-700,000 in furnishings per store.
In the past few years, Change has entered leasing agreements to finance the furnishings in order to ease the company´s liquidity situation and to promote growth. But their plans for new stores in Norway were met with reluctance by the leasing company.
”The leasing company was cautious about extending our financing facility in step with our requirements,” says Jensen.