• Home
  • News
  • Business
  • Mexx declared bankrupt

Mexx declared bankrupt

By Simone Preuss

loading...

Scroll down to read more

Business

The court of Amsterdam declared Dutch fashion chain Mexx bankrupt on Thursday. Its shops, however, will remain open for the time being. The news comes shortly after the announcement of a new flagship store in Amsterdam and the reopening of the webshop for the holidays.

Court-appointed trustee Frits Kemp blamed the poor economic conditions that have plagued the fashion industry for the company's dilemma. According to him, keeping the stores open as long as possible will help to sell remaining stock and might attract buyers more easily.

Mexx shops to remain open

Mexx has been having difficulties for some time now. Since the departure of founder Rattan Chadha, things seemed to go downhill. Over the past two years, the company has had three different CEOs and management teams. After the departure of Thomas Grote in May 2012, Doug Diemoz was at the helm. In August 2013, the company closed the doors of the store on the Kalverstraat in Amsterdam; a location it had kept for twenty years. In the same week, Diemoz was replaced by a three-person management team. In early March, Mexx decided to close its webshop, a move that created quite a stir in the industry.

The bankruptcy of Mexx touches all major business units: Mexx Europe International; Mexx Holding Netherlands; Mexx Europe and Mexx Euro Production. The brand has stores in fifty countries. Of the 315 European stores, most are operated as franchisees. The company has about 1,500 employees.

Since 2011, Mexx is owned by US investment company The Gores Group. A minority interest also remains in the hands of the Liz Claiborne Group.

Mexx