The French fashion chain IKKS, which specializes in high-end women’s fashion, has been placed under court administration. Despite restructuring, the retailer can no longer bear its high debt burden. Its Belgian ans Spanish operations have not (yet) been affected.
Changing consumer behavior
At the beginning of last year, IKKS announced a reorganization under the name PhoenIKKS, which involved the closure of 77 French stores. The four-year restructuring plan was intended to generate savings of 15 million euros in order to improve productivity and repay debts. However, the hoped-for revival of business failed to materialize, leading to the current financial emergency. IKKS says it is still feeling the effects of the Covid-19 pandemic, which has brought about a change in consumer behavior. The growth of second-hand goods and the war in Ukraine are also factors that are affecting the retailer.
