Dutch fashion chain Miller & Monroe has been given protection against creditors for three months, in order to allow the management to deal with its financial problems.
The chain of 72 multi-brand stores had asked for deferral of payments earlier this week, but has agreed with the bank ABN Amro to let owner Vidrea Retail sort things out during the next three months. Business can continue to operate, all stores remain open and staff can continue to work. If in those three months another agreement can be reached with two thirds of the creditors (if those over three quarters of the outstanding debt), a delay of up to one and a half years may follow.
The agreement is rather exceptional, because usually a request for a suspension of payments means curtains. In order to make possible the much-needed turnaround, Remt Melles (who helped found the chain in 2017) returns as the company's CEO. "I'm happy to be back", says Melles: "The problems at the German branch have endangered our activities in the Netherlands, but this agreement gives us time and peace of mind to start talks with the most important stakeholders. I will do everything I can to restore confidence in the company and to ensure the future success of Miller & Monroe."
The chain was only founded in 2017 and was built on the ashes of bankrupt Charles Vögele, as fashion group Vidrea took over 72 stores and turned them into the M&M multi-brand stores. However, financial trouble in the German branch spelled trouble and last year, news about the financial trouble was leaked in the press and Dutch creditors too were quick to apply the brakes.