HEMA has been placed in receivership, with its British owner Lion Capital and the banks that had lent it money as its curators.
More than one cause
Owner Lion Capital has apparently taken control of 'its' HEMA, according to Financieele Dagblad. An insider has stated that an army of bank employees and Lion staff are running things at the main office.
Every interviewee points out that there are many reasons as to why HEMA is in trouble, but one of the main issues is how the company is run. Both Lion Capital, the board of directors and its CEO Ronald van Zetten have received their part of flak for their part in the "ruin" of the retail branch's Dutch icon.
Operating profit is problematic
Allegedly, Van Zetten works on his own and refuses to listen to criticism anymore. "Ronald only listens to Ronald", is one of the comments. The CEO believes the criticism is not founded and he refutes the claims that "all decisions are being taken by one person, without any communication."
The group announced a 16.4 million euro net loss in May, while it had managed a 5.8 million euro profit the year before. One of the lenders' demands was that its operational profit did not drop below 120 million euro, while the retailer only managed 119 million euro in May.