Fashion
Bestseller CEO’s Klarna stake drives $1.7 billion investment comeback
By
Bloomberg
Published
September 11, 2025
Anders Holch Povlsen has accumulated stakes in listed online retailers, banks, and other finance firms over the past two decades, while overseeing one of the world’s largest closely held fashion fortunes.
But it’s a lucrative bet on Klarna Group Plc that’s currently driving the 52-year-old billionaire’s wealth revamp.
Povlsen, chief executive officer of Danish clothing retailer Bestseller, is among the biggest winners from the initial public offering of the financial technology company, which began trading Wednesday in New York and closed almost 15% above its offering price of $40 per share.
He now owns a roughly $1.4 billion stake in the Swedish business, making it his largest holding in a publicly traded company, while also cashing in at least $250 million from the offering, which priced above the marketed ranges, according to Bloomberg calculations. Povlsen has overall gains of more than 600% from his investment in the provider of buy-now, pay-later financing, taking the value of his disclosed holdings in listed companies to about $2.5 billion, the calculations show.
A representative for Povlsen — who has a total net worth of $6.9 billion, according to the Bloomberg Billionaires Index — didn’t immediately respond to requests for comment.
Despite Klarna’s current valuation falling well below its 2021 peak of $45.6 billion, Povlsen’s investment underscores one of his most successful efforts to diversify a family fortune that began five decades ago, when his parents founded Bestseller as a women’s clothing store in a small Danish town.
Povlsen acquired a 10% stake in Klarna in mid-2017 through his family office, Heartland, just weeks before the fintech was valued at approximately $2.3 billion. He earlier used the investment firm to acquire holdings in e-commerce fashion sites Zalando SE and ASOS Plc. Heartland’s other listed assets include Funding Circle Holdings Plc, a London-based lending platform that has struggled since its initial public offering in 2018.
While also a major landowner in Scotland, most of Povlsen’s fortune remains tied up in Bestseller, where he first began working as a teenager before taking over from his parents as owner and managing director in 2001.
In a rare interview this year to mark Bestseller’s 50th anniversary, Povlsen said he originally wanted to start an e-commerce firm before deciding to work in the family business, underscoring his long-standing interest in the sector that Klarna has helped transform since its own creation in 2005.
“My parents did everything they could to dissuade me from following in their footsteps,” he told the Spin Off fashion magazine. “The more they tried, the more my interest in Bestseller grew.”
Other winners in Klarna’s IPO include the founders Victor Jacobsson, Niklas Adalberth, and Sebastian Siemiatkowski, who’s also its CEO. They cashed in at least $50 million of their combined holdings in the oversubscribed IPO, which valued the company at approximately $15 billion, according to filings.
The three now control overall stakes worth more than $2 billion in Klarna, a company that has evolved from a European clone of PayPal Holdings Inc. to one of the world’s biggest providers of short-term consumer loans as it seeks to disrupt the banking sector.
“You have to be willing to push the envelope,” Siemiatkowski said in an interview Tuesday with Bloomberg News.
The company posted a net loss of $7 million, compared to a net income of $16.3 million in FY24. Adjusted EBITDA fell to $63.6 million, or 6.4 per cent of sales, from $109.1 million, or 9.9 per cent a year earlier.
Torrid Holdings has reported a weak FY25, with sales falling 9.4 per cent to $1 billion and a net loss of $7 million amid margin pressure.
The company closed 151 stores and saw EBITDA decline.
Q4 performance also weakened.
Despite this, Torrid expects modest recovery in FY26, supported by optimisation efforts, improved marketing and a stronger operational foundation.
The company closed a total of 151 stores during the year as part of its retail optimisation strategy, reducing its footprint from 634 to 483 stores, Torrid Holdings said in a press release.
Torrid ended the year with $20 million in cash and cash equivalents, while total liquidity stood at $84.9 million. Net cash used in operations was $13 million, compared to positive operating cash flow of $77.4 million in the previous year.
For the fourth quarter (Q4), net sales dropped 14.3 per cent year-on-year (YoY) to $236.2 million, while comparable sales fell 10 per cent. Gross margin contracted to 30.0 per cent from 33.6 per cent a year earlier. The company reported a net loss of $8.1 million, widening from a $3.0 million loss in the same period last year. Adjusted EBITDA declined sharply to $5.1 million, or 2.2 per cent of sales, compared to $16.7 million, or 6.1 per cent, previously.
During the quarter, Torrid closed 77 stores under its Store Footprint Optimisation Project, taking the total store count to 483 locations.
Commenting on performance, Lisa Harper, chief executive officer at Torrid Holdings, said, “2025 was a transformational year. We delivered $1 billion in net sales, in line with our guidance, and $63.6 million in Adjusted EBITDA, exceeding the high end of our outlook, while making deliberate strategic decisions required to put this business on a stronger footing. We closed 151 structurally unproductive locations, launched five sub-brands that generated approximately $70 million in sales, and fundamentally restructured our product assortment around core franchises and fabrications our customers value most. Trends in Q4 and early Q1 give us confidence that the foundation we’ve built is beginning to take hold.”
Looking ahead, the company expects first-quarter fiscal 2026 net sales in the range of $236 million to $244 million, with Adjusted EBITDA between $14 million and $18 million. For the full year, Torrid forecasts net sales between $940 million and $960 million and Adjusted EBITDA of $65 million to $75 million, alongside capital expenditure of $8 million to $10 million.
“We enter 2026 with a strong operational foundation—optimised channels, product and pricing. This positions us to accelerate customer file growth through renewed marketing efforts, helping us re-engage past shoppers, attract new customers and deepen loyalty across our existing base. I am confident we are on the right path and encouraged by early signs of progress we are seeing in the business,” added Harper.
Fibre2Fashion News Desk (SG)
The People’s Bank of China (PBoC) is set to conduct a one-year medium-term lending facility (MLF) operation worth 500 billion yuan (~$72.52 billion) on Wednesday. The move is aimed at ensuring sufficient liquidity within the banking system.
The People’s Bank of China will conduct a 500-billion-yuan (~$72.52 billion) one-year MLF operation to support banking liquidity.
Conducted via variable-rate tenders, the move will offset 450 billion yuan in maturing funds, resulting in a net injection of 50 billion yuan (~$6.9 billion).
This marks the 13th consecutive month of net liquidity infusion by the central bank.
The operation will be carried out via variable-rate tenders with a fixed volume, using a multiple-price auction mechanism, said Chinese media reports quoting the central bank.
With 450-billion-yuan worth of MLF funds due to mature this month, the latest operation will result in a net liquidity injection of. This marks the 13th consecutive month in which the PBoC has added net liquidity through the facility.
The operation will result in a net liquidity injection of 50 billion yuan (~$6.9 billion), after accounting for 450 billion yuan in MLF funds maturing this month, extending the PBoC’s streak of net injections to 13 consecutive months.
Fibre2Fashion News Desk (SG)
During the second month of ****, apparel and accessories accounted for *.* per cent of Japan’s total imports, which stood at *,***,*** million yen. Imports of textile yarn and fabric rose **.* per cent to **,*** million yen (~$***.** million), representing * per cent of total imports.
On the export side, textile yarn and fabric shipments decreased *.* per cent to **,*** million yen (~$***.** million). Textile machinery exports rose *.* per cent to **,*** million yen (~$***.** million), contributing *.* per cent to Japan’s total exports of *,***,*** million yen.
US’ Torrid sees FY25 sales fall 9.4%, reports $7 mn loss
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