RNB RETAIL AND BRANDS has secured new operating financing from the company's main owner Konsumentföreningen Stockholm. The new operating financing consists of a new loan of 150 MSEK with a maturity of 24 months from March 2012. The loan is mortgage-free during the first year, and will be repaid in full during the following year (March 2013-March 2014). The terms are based on current market rates. Konsumentföreningen Stockholm has previously granted RNB a loan of 400 MSEK. As a further step in strengthening the company´s capital structure, the maturity of this loan will be extended by roughly one year from March 2013 to June 2014. "Overall, the new loan together with the extension of the existing loan to RNB has secured the financing of our operations even if market conditions continue to be challenging. Our assessment is that the new financing, together with the implemented efficiency measures provide us with sufficient financial strength to complete the change process as planned, "says Magnus Håkansson, President and CEO of RNB RETAIL AND BRANDS AB. Increased efficiency ensures profitability As a step towards creating a more efficient and profitable RNB, a comprehensive and group-wide change process has been initiated in 2011. This work will continue in full force in 2012 and have a positive impact on both earnings and liquidity during the fiscal year 2011/2012 and full profit and liquidity effect in 2012/2013. The measures implemented to date are expected to generate cost savings of approximately 35 MSEK during the 2011/2012 fiscal year and at least 65 MSEK during 2012/2013. The restructuring of JC Norway will be finalized during the year and this will have a positive impact on the profitability with an amount corresponding to the loss 2010/2011 of 63 MSEK. All efficiency-raising measures are to be implemented before the end of the fiscal year 2011/2012 and will result in an efficient organization and effective work processes for RNB. This gives a strong positive leverage on both earnings and liquidity in 2012/2013. "Now that we have secured operating financing we will be able to fully focus on the strategic plan and the change process that will create a profitable RNB. The change and efficiency improvements that were launched in the summer of 2011, along with the now secured operating financing, puts us in a good position to achieve a positive result and cash flow, "says Magnus Håkansson. For further questions please contact: Magnus Håkansson, President and CEO of RNB, phone: +46 8 410 520 02, mobile: +46 768 87 20 02 e-mail:magnus.hakansson@rnb.se RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing, accessories, jewelry and cosmetics stores that focus on providing excellent service and a world-class shopping experience. Sales are mainly conducted in Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn O. Pyret, as well as through shops in the department stores NK in Stockholm and Gothenburg and Illum in Copenhagen. RNB RETAIL AND BRANDS has operation in 11 countries. RNB RETAIL AND BRANDS has been listed on the OMX Nordic Exchange since 2001. RNB secures operations financing: http://hugin.info/132993/R/1575057/490488pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: RNB Retail and Brands AB via Thomson Reuters ONE [HUG#1575057]