Troubled Dutch fashion chain Mexx is set to make a new start under Turkish ownership.
The fashion company has been acquired by Turkish fashion-retail company Eroglu Holding, announced the court appointed curator of Mexx, Frits Kemp and the retailer’s interim CEO Herman Hovestad on Wednesday. The exact amount paid for the acquisition was not disclosed, however according to news reports it was in the ‘tens of millions’ of euros.
Mexx given fresh start by Turkish company Eroglu Holding
The move comes one month after Mexx was declared insolvent. Mexx stores are expected to reopen within several weeks, and Eroglu Holding is currently conducting interviews to reestablish salaries and working conditions for 250 employees within the Netherlands, according to Nu.nl.
The Turkish fashion company sees great potential in the Dutch fashion retailer, with the chief executive of Eroglu Holding, Nurettin Eroglu commenting: "Mexx has 500 stores in 56 countries and an annual turnover of 1,2 billion euro. With this acquisition we expect to increase the exposure of our brand name internationally."
Eroglu Holding is reportedly still in the midst of negotiating terms to take over Mexx franchisees. However, Hovestad has said that Mexx will be back in business as soon as possible, first with 8 stores in the Netherlands before opening approximately 50 stores across West-Europe. If Eroglu successfully manages to negotiate with Mexx franchisees, the company will reopen roughly 200 stores.
Kemp predicts Mexx’s new owners to remain faithful to the brand’s DNA and values. “They are crazy if they don’t,” said Kemp to Nu.nl. The Turkish company has reportedly already begun designing Mexx’s collection for the upcoming season. “What I like is that the company really wants the brand to continue on,” adds Kemp.
Mexx is the first West-European fashion chain that the Turkish company has acquired and over the next 5 years Eroglu Holding intends to open at least 100 new Mexx stores in Turkey, as part of its long-term strategic plan for Mexx. The fashion company aims to generate an annual turnover of 1 billion Turkish lira (370 million euro) for Mexx by the end of the period.