Troubled hosiery manufacturer Wolford has agreed with its Austrian banking partners to extend its credit lines until 30 June 2018, as well as to receive bridge financing of up to €10 million ($11.4m) to cover its peak seasonal liquidity requirements.

The agreement is subject to contractual implementation and the approval of the corporate bodies of the banks. Wolford said the move ensures the financing of the business for the current financial year ending April 2018.

Additionally, the company said management is actively supporting the process initiated by main shareholders to find potential buyers for a majority stake in the company. The acquisition of the block of shares by a future core shareholder is a measure designed to strengthen the medium and long-term liquidity of the business.

The announcement comes a week after Wolford announced the departure of CEO Ashish Sensarma after five years in the luxury hosiery brand. Axel Dreher, current chief operating officer and CFO will take over the CEO role.

In April, Wolford reported that up to €10 million of impairment losses and restructuring measures could be added to planned operating losses of up to €10 million during the 2016/17 financial year. In the first nine months of the current financial year, Wolford saw sales decline by 7.5% to €119 million euros ($135m). The company has approximately 1,500 employees.