Hema

Struggling Dutch chain Hema tries to find a way out of its problems: owner Marcel Boekhoorn wants to invest new capital, but only if the creditors reduce the debts.

Frits van Eerd, CEO of Dutch supermarket chain Jumbo, wants to expand into Wallonia - and from there, France. New markets can be conquered if a chain offers premium experience at discount prices, he says.

The collaboration between Dutch chains Jumbo and Hema, which they had already announced in November last year, started this morning with a festive ceremony in the Jumbo Food Market in Breda. Other stores in the Netherlands and Belgium will follow soon.

Credit rating agency Moody's is very concerned because Hema has postponed a repayment to parent company AMEH XXVI. The Dutch chain's total debt, some 750 million euros, and the dismissal of CFO Ivo Vliegen, are also a cause for concern for Moody’s.

Soon after revealing they would start working together closely, Dutch chains Jumbo and Hema have reached an agreement on an intensified commercial cooperation in the Benelux. Over the next three years, Jumbo will take over the leases of fifteen Hema branches in major Dutch cities, and those of two Belgian Hema stores. In addition, all Jumbo supermarkets will start to sell Hema products.

Jumbo and Hema are going to cooperate closely in Belgium and the Netherlands. Both Dutch companies think they can profit from eachother's strengths

After a questionable quarter, Hema is hoping to find greener pastures in the US and Canada. The Dutch department store company will be collaborating with Walmart, no less.