NKD Group has been refinanced

NKD Group

NKD Group is a market-leading, discount retailer offering its customers a broad assortment of value-for-money apparel and hard goods. The group, backed by TDR Capital since 2019, operates a large store portfolio of more than 2,000 stores located across Germany, Austria, Italy, Slovenia, Czech Republic, Croatia and Poland. NKD holds a unique market position, operating smaller format stores in suburban, inner-city locations, positioning itself as a local, go-to-convenience platform, driving strong customer loyalty. Since their investment, TDR has worked closely with the company to drive the use of data science to support several value-add initiatives focused on optimizing discounting levels, improving promotion targeting and merchandise selection. The group continues to grow and expand its reach through its new store roll-out program in existing and new European markets.

The Deal

The capital raise has enabled NKD to refinance its existing facility and provide additional working capital to support the group’s continued growth. Despite wider sector challenges facing European retailers, NKD’s resilience and strong market positioning has allowed it to raise a comprehensive financing package even in a challenging financing market. The group now has a flexible capital structure with new lending partners, which provides a strong liquidity position and allows the company to continue to grow.

Stefan Macheleidt, Chief Financial Officer of NKD Group, commented, “Lincoln’s guidance and perseverance throughout the financing process was invaluable. The team took a collaborative approach to messaging the NKD story to potential lenders which resulted in a successful outcome.”

Our Perspective

Xenia Sarri, Managing Director in Lincoln’s Capital Advisory Group, stated, “Lincoln was delighted to support NKD and TDR on this important refinancing. The business is now well placed to take advantage of market dynamics, with an appropriate funding structure to support its continued roll-out plans. The transaction highlights that, despite economic challenges impacting the sector, there is still appetite from lenders to support retail businesses with strong credit characteristics. Lincoln was able to draw on its global platform, extensive lender relationships and sector expertise to deliver an attractive funding package.”

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Lincoln's guidance and perseverance throughout the financing process was invaluable.
Stefan Macheleidt
Chief Financial Officer of NKD Group

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Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.