A belgian clothing retailer e5 mode, asks for protection from creditors

After the Store Tuesday expressed the fear that the coronacrisis may not survive, is a Belgian clothing chain e5 mode is now on for protection from creditors. The clothing retailer is, in other words, in a poor paper.

The Belgian clothing retailer e5 mode, the ondernemingsrechtbank of new jersey asked for a judicial reorganisation (WCO, the Law on the Continuity of Enterprises), to start with. The supply chain is being hit hard by the coronacrisis, and do not see any solution other than protection, is to ask at the creditors as a whole. Due to the forced closure of the shops, looking e5, mode, now face a loss of revenue of 12 million euros. “I think this is very sad for our company and our 500 employees, but I don’t see any other alternative. In this scenario, it was not a part of our business plan,” says CEO Frédéric Helderweirt.

stores closed

the clothing retailer e5 mode has 56 stores in Flanders and 12 in Wallonia. They are all known it since the 16th of march to close for at least 5 weeks. And that’s cut firmly into revenues.

“I have every sympathy for the measures taken by the government in this crisis, which unseen. The well-being of our customers and my co-workers in the first place. We even have Monday the 16th of march, on his own initiative, decided to take our stores to be close to this, the government is required. But the weeks of closing, it means a direct loss of revenue of 12 million euros. A period of time, which for our business is very important, and with the new lentecollecties the Oxfam charity event,” says Frédéric Helderweirt.

e 5-mode stresses that the shop is still open and will remain open during the process of the court system. As soon as the government allows the stores to open, this will also be done.

Now, e5-mode, for up to 3 months of protection against its creditors in the chain of a go-around and the search for potential new investors to begin with. “The plan is for the chain to once again be financially sound to be ambitious,” says the CEO of Helderweirt, “but it is realistic. Unfortunately, it calls for a reorganization of a lot of time and efforts to only be noticeable after a longer period of time.” The time that the chain, now it doesn’t get it. The entrepreneur stressed that he will continue to fight for the survival of the e5-mode, and the associated employment opportunities.

No surprises:

in The socialist bediendebond BBTK, it is not a surprise. “The most important thing is what will happen to the staff after the coronacrisis,” says vakbondssecretaris Bart Leybaert.

“it’s not a surprise. We have had a long time ago already have an agreement on the phased closure of the region of stores. We were informed that the board was working on a recovery plan for the local stores and the head office” refers Leybaert, to the plans of the new owner of the e5-Mode, but in January, it announced it had.

But because of the coronacrisis, and the closure of the shops, e5, expected a loss of 12 million euros, the company is in the speed of them.

“My concern is, what are the consequences of it are going to be for those of us in the post-coronatijd,” says Leybaert. The coronacrisis, it is still just guess work, for how long will the closure of the stores, for example, have to take? “The longer it goes on, the greater the problems will be gone.”

Was seriously wounded, but not dead

e5 the mode is “badly injured but not dead,” as does the christian bediendebond ITS Pulse on the legal protection of the fashion, to Match. The union will be constructed in order for the company to emerge from the crisis, and to get a new start, but it will be the workers ‘ is not in the offering box and lay.

In a press release also points out that Wouter Parmentier, head of the CENTRAL Pulse at e5-mode, in a situation in which the company has already been found for the coronacrisis .”The company has made in recent years, though, with a narrow flow. There is no buffer to prevent a major shock, such as the coronacrisis to deal with that.”

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