Dutch retailer Blokker has been declared bankrupt, even though its distribution centre and franchise stores are not part of the bankruptcy. The company’s own shops are trying to stay open for a clearance sale.
Own application
A court in Amsterdam has declared retail chain Blokker bankrupt, as per the company’s own application. This follows its previously requested moratorium on payments due to ongoing financial problems. Two administrators have been appointed, Dutch newspaper De Telegraaf reported. Despite the bankruptcy, the nearly 400 shops will remain open for now. The administrators hope to reduce debt by selling existing stock and are exploring the possibility of selling part of the chain.
Blokker was owned by the eponymous founding family until 2019, and has been struggling with losses for years. The number of shops has halved since 2015. Recent attempts to cut losses were insufficient to stem the tide.
Covid debts
The chain was unable to pay VAT earlier this year, leading to a dispute with a financier. A new US financier provided a loan of at least 35 million euros. Blokker also has a debt of almost thirty million euros with the tax authorities following the Covid-19 pandemic.
Three weeks ago, Mirage Retail Group (which owns Blokker) sold its toy chain Intertoys to Belgian competitor Toychamp, a transaction that was approved by the relevant authorities on Monday. It is unclear whether the proceeds will be used to pay off creditors in this bankruptcy.
