Casa buys time with judicial reorganisation

Belgian chain Casa International has filed for judicial reorganisation, facing persistent cash problems. The retailer is now pinning its hopes on a successful Christmas sale.

Create breathing space

The judicial reorganisation – a procedure that provides temporary protection from creditors – should give Casa “breathing space to re-secure the continuity of its business”, the company said in a press release. “Despite the progress we have made, and partly due to adverse developments in the retail market, Casa International’s situation remains fragile. This is causing an acute cash problem that threatens the continuity of the business and needs to be addressed urgently.”

Casa tried to create that breathing space with major discounts in June, following turmoil in the boardroom. In April, Swedish businessman Ayad Al-Saffar entered the chain’s capital, but left again only two months later to focus fully on acquiring Inno. Recently, the chain closed 46 stores, including twelve in the Netherlands and 25 in France. Casa International still has some 400 stores in eight countries.