Germany’s 21sportsgroup announced it had secured the working capital it requires to operate its multi-channel running, cycling and triathlon stores through 2016.
The retailer did not disclose terms of the investment, but said it will provide strategic cash reserves and boost profitability by enabling it to take advantage of pre-season and other standard manufacturer’s discounts.
“The constant growth in demand and revenue results in challenges in terms of financing, which can only be tackled through a solid foundation of working capital,” said CFO Michael Burk. “We therefore take pride in the fact that 21sportsgroup managed to secure sufficient funds for the next three years of growth in the successful financing round we just closed.”
21sportsgroup sells running, cycling and triathlon sporting goods through bricks-and-mortar stores in Germany and online stores that serve customers across Europe from its brand new fulfillment center in Mannheim. The company’s online shops operate as 21run.com, 21cycles.com, and 21streetwear.com.
“Ambitious runners, cyclists, triathletes, and recreational athletes value our comprehensive range and exceptionally fast delivery times thanks to high inventory levels,” explained Jörg Mayer, founder and CEO.