Hema puts pressure on creditors

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.

100 million

Days after enforcing lower rents, the retainer now tries to get a hold of its debts. Boekhoorn said creditors should cancel a part of the mountain of debts the chain is carrying, Dutch newspaper FD reports: each year, Hema has to pay fifty million euros in interests each year, and on top of that another fifty million euros worth of loans are to be repaid this June. However, the coronavrisis has closed many stores and Hema’s turnover took a nosedive.

It is no surprise that Boekhoorn is now pushing to get rid of as much debt as possible: his investment company Ramphastos is looking into ways of refinancing the debts, including 750 million euros in obligations that are due to be repaid in 2020 and 2023. These are said to be worth less than half of what they used to, anyway.

Only last week, CEO Tjeerd Jegen already said his chain could go bankrupt if some of the stakeholders refuse to give in. Property owners have already had to lower their rents, while staff have seen their pay rise delayed to after the summer.