No debt protection for outlet retailer Mega World

Mega World store
Photo RetailDetail

Court does not respond to Mega World's request for protection against creditors and appoints two provisional administrators. They are likely to prepare the company for bankruptcy.

 

Not credible

Outlet chain Mega World, the follow-up story to Blokker in Belgium, will not get protection against creditors: the court rejected the application because accounting documents were missing, writes De Standaard. The judge did, however, respond to the request of the trade unions to appoint provisional administrators. In practice, they will be able to do little more than prepare the bankruptcy of the chain.
 

Last week, Mega World CEO Rudy Claes had made it clear that he could present a recovery plan that would not cost jobs, but observers and those involved did not find that claim very credible. In any case, the new lockdown in Belgium makes it impossible to restart sales. There is therefore a good chance that the endgame has stated for the discounter, who made a false start on the Belgian market from the very beginning and who has been accused of tampering from various angles. Mega World has 119 stores in Belgium.