Dutch Etam is granted deferred payment

Dutch Etam is granted deferred payment

Fashion concern Etam Groep has asked the court in The Hague for deferred payment because of "the increased pressure in the Dutch fashion retail market and eCommerce's strong surge". Today, the court has granted the request.

Consequences for staff unclear

There was a rumour this morning that Etam Groep, which owns brands like Miss Etam and Promiss, would ask the court for "deferred payment" and the company has now confirmed the news: "Despite the organisational restructuring and cost reductions, Etam still has not managed to adapt to the altered market situation", management admitted in a press release.

 

Today the court has granted the deferred payment and two people have been temporarily put in charge to check which options the company has for the future. These may include a search for a new owner, a complete bankruptcy or a restart in a smaller form.

 

"Worrying sign"

It is unclear what this means for the staff: "Etam Groep's employees will continue working for the time being and get paid accordingly", the press release said. Labour unions fear this might mean there will be job cuts: "Etam has previously undergone restructuring programs and closed down stores as well. I did not expect the company to be in such an ordeal", CNV's Martijn den Heijer said. The labour union hopes the company can relaunch itself: "We expect clarity in the upcoming weeks."

 

Den Heijer feels this is a "worrying sign": "Miss Etam has been winning consumer prices left and right for years and the company's online sales have also been growing. If such an esteemed company can't make it through, then you fear for the other brands. It seems pricing is becoming more important and that shows that the crisis has not passed yet."

 

Already cut 240 jobs

The Dutch retailer currently has 2,200 employees and some 200 stores (130 Miss Etams and 70 Promiss stores), but has been struggling for a while. It cut 140 jobs in 2013 and another 100 at the start of the year at its main office in Zoetermeer. Declining sales have impacted the company for years and it now wants to focus more on its online sales.

 

Temporary CEO Frits van Peski has been in charge of Etam Groep from the start of the year, taking over from John van der Ent who joined V&D, a company that is also in quite some trouble.

Questions or comments? Please feel free to contact the editors


Twelfth straight growth quarter for Walmart

17/08/2017

American supermarket chain Walmart has surpassed analysts’ expectations for the previous quarter, the company’s twelfth straight growth quarter. The world’s largest supermarket chain especially benefited from a strong online growth.

FrieslandCampina sells fruit juice division

17/08/2017

Dairy company FrieslandCampina has sold its fruit juice division, which also contained the Appelsientje brand to Dutch investment firm Standard Investment.

Carlsberg's turnover increases despite lower volumes

16/08/2017

In the first half of the year, Danish beer brewer Carlsberg’s turnover grew 2 % to 31.8 billion krona (4.3 billion euro). The improves sales for its more expensive beers, like Grimbergen, contributed to this turnover increase.

Losses keep growing for HelloFresh

14/08/2017

In the first half of 2017, meal box delivery service HelloFresh has seen both its turnover and its losses grow significantly. This gives mixed messages in the preparation of its IPO, which is planned this fall to create room for more investments.

Italian gelato is European market leader

11/08/2017

Italian cuisine is revered all across the globe, with people often thinking of pizza and pasta. However, Italians also have an ironclad reputation when it comes to ice cream. This is also reflected in sales, as Italians are the European market leader.

Oprah Winfrey and Kraft Heinz join forces

10/08/2017

American tv star Oprah Winfrey has joined forces with Kraft Heinz to develop a range of “healthy and nutritious soups and side dishes”. The range, currently only available in the United States, should help Kraft Heinz generate turnover growth once more.

Back to top