Kapp-Ahl bids for Lindex

Swedish clothing chain Kapp-Ahl has made a bid for rival Lindex, offering 7.013 billion kronor ($1.3 billion), or 102 kronor per share.

The offer gives a 15 percent premium on Lindex’s most recent stock market valuation on 10th August, and on the company’s share price over the last three months.

Lindex’s board was not informed of the bid in advance, and was refusing to comment on the approach.

“We have nothing to say yet,” said Conny Karlsson, chairman of Lindex, speaking on Monday morning.

The combined group would have 614 stores and a turnover of 9.6 billion kronor. Kapp-Ahl will finance the purchase through bank loans and a preferential share issue.

Kapp-Ahl plans to continue running two separate chains in the combined group. Both chains were founded in the early 1950s and have their main markets in Sweden, Norway and Finland. Kapp-Ahl also has stores in Poland, and Lindex has a small number of outlets in Estonia, Latvia and Lithuania. Lindex has 18 stores in Germany that it is in the process of closing.

The two chains serve different markets, with Kapp-Ahl selling low-price clothes for both sexes and all ages. Lindex stocks only women’s and children’s clothes, and has a strong focus on underwear.

Kapp-Ahl has a market value of 5 billion kronor, while Lindex is valued at 6.1 billion. Kapp-Ahl says that the combined group will be able to make annual efficiency savings of 150 million kronor.


Swedish fashion brand scraps plus-size range

Swedish clothing brand Lindex has decided to scrap its plus-size range and instead make all of its standard collections available in larger sizes.

Swedish fashion brand scraps plus-size range
A promotional shot from Lindex’s autumn/winter campaign. Photo: Lindex

From autumn onwards, Lindex’s previous plus-size range 'Generous' will no longer be available, with plus sizes integrated into the brand’s standard fashion lines. Its forthcoming autumn/winter campaign will also be fronted by plus-size models Ashley Graham and Candice Huffine alongside supermodels Alek Wek, Toni Garrn and Cora Emmanuel.

“We want women of all sizes to feel included and feel they can buy items from all our fashion concepts. This change will make our collections more inspiring and accessible to more customers,” Lindex head of design Annika Hedin explained in a statement.

There have been growing calls for the plus-size distinction to be scrapped entirely by the fashion industry, with critics arguing that it causes shame.

In 2014, Swedish chain H&M was criticized for labelling a model capable of fitting into their medium clothing as 'plus-size' in a catalogue. Former professional swimmer Emma Igelström said that by calling the model plus-size, the brand was “strengthening the idea that super skinny is the ideal”.

This isn't the first time that Lindex has gone against the norm. In 2014 one of the brand’s underwear campaigns caught attention when it featured employees in front of the camera instead of models.