Cassis & Paprika files for ‘silent bankruptcy’ with a view to takeover

The relaunch of Belgian fashion chain Cassis & Paprika is encountering reluctance from the banks, owners say. A new investor would like to take over the retailer after a so-called ‘pre-pack bankruptcy’.

Opposition from banks

In May this year, the Enterprise Court in Nivelles approved the ailing Cassis-Paprika group’s recovery plan, under which the retailer would focus even more strongly on the booming plus-size market under the unified Cassis Paprika brand. Nine shops were to close and 67 jobs were to disappear at the head office.

But in a letter to staff, the management pointed to ‘frantic and persistent opposition from the banks’ to the relaunch plans. Consequently, the owners started looking for new investors. Futura Capital Fund would like to take over about 70% of the shops and staff at the headquarters, but through the special procedure of a prepack bankruptcy or so-called ‘silent bankruptcy’. In this, bankruptcy is declared only after the sale. The prospective buyer has a maximum of 60 days to negotiate with a receiver.

Cassis & Paprika has some 130 shops in Belgium, Luxembourg, the Netherlands, France and Germany.