Hema fails to prove viability, delays FY results

Dutch Hema has decided to delay publication of its full-year results for the second time, as accountants struggle to declare the chain viable.

Five months’ delay

The chain should have reported its figures for the broken financial year on 20 March, but the coronavirus measures delayed the release to this week. However, publication has now again been put backwards – again with the coronavirus as the stated reason. Dutch companies are allowed to delay publication of their financial results by up to five months this year, and Hema has decided to state no new date for publication for the time being.

Dutch media suggest that the problem would be a statement of continuity, in which accountants have to say whether or not a company is viable for another year. However, the coronavirus measures have had a detrimental effect on the company’s performance in the last few months, making it a lot harder to prove viability, the FD states.

Waiting for improvement

With most international stores open again (just 33 of the 775 stores worldwide are still closed) and sales resurging, the retailer hopes better results can enter the books. That may be a big ask however, because even in the Netherlands (where stores were allowed to remain open during the height of the corona crisis) turnover fell by a third.

Meanwhile, owner Marcel Boekhoorn hopes to be able to find a debt resettlement and delay for loan repayments. The chain is also looking to sell its bakery branch (unsuccessful so far) and has managed to get temporarily lower rents.