Dutch fashion platform Otrium made considerable losses in the past year. The company is 50 million euros in the red. The year before, losses were at 8.4 million euros. This is mostly due to bonuses as well as further company expansion.
Otrium is an online fashion platform founded in 2016 in the Netherlands. The retailer mainly sells to customers in Western and Central Europe. Otrium is known for selling excess inventory from high-end brands such as G-star and Puma.
Losses mostly due to stock appreciation rights
The fashion retailer is now 50 million euros in the red, Dutch publication Quote writes. Back in 2020, losses were at a much lower 8.4 million euros. The high losses are mostly due to stock appreciation rights. These bonuses represent one third of the red number. The earnings before interest (EBITDA) doubled to 10 million euros.
From 85 to 151 employees
Because Otrium grew from 85 to 151 employees, salary costs also went way up: from 4 million to 19 million euros. The new hires are made in the workforce as well as management. Top management also received higher bonuses. These increased from 300,000 euros in 2020 to as much as 5 million euros last year.
New hubs in the UK and United States
Otrium has therefore grown a lot in the past few years. A year ago, the company raised 120 million dollars, after 24 million dollars in funds back in 2020.
The platform went overseas last year with distribution hubs in the United Kingdom (UK) and the United States. Otrium currently ships across Europe, with additional hubs in Portugal and France.