Dutch fashion chain M&S‘ request for deferred payment resulted in this week’s bankruptcy. The chain will file bankruptcy today and fire all of the employees tomorrow apparently.
Bankruptcy unavoidable
Staff has already been informed about the bankruptcy, according to information given to Dutch paper De Telegraaf. Once all employees are let go, the UWV (the Dutch organization that handles workers’ insurances) will handle all salary payments.
Time will tell if MS Mode can relaunch on its own, but first guardians will need to investigate whether the store chain has a future.
The retail chain is apparently in huge debt: the ladies’ fashion brand for larger women allegedly has a 7 million euro debt. Both banks and shareholders have refused to give the company additional funds as MS Mode already asked for deferred payment for a 35 million euro Rabobank loan.
MS Mode has about 400 stores, 130 in the Netherlands and another 270 spread across Belgium, Luxembourg, Germany, Spain and France. The chain employs 2,300 people.
