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Clothing brand Mexx bankrupt

11:57 05/12/2014

The Dutch fashion chain Mexx has declared bankruptcy. The group had been struggling financially for some time. Its 315 stores, including some 70 in Belgium, will remain open for the time being in order to sell off some of their remaining merchandise.

Mexx shops, found in most Belgian shopping areas, will eventually disappear, after a court in Amsterdam declared the company bankrupt on Thursday. The court decision is the preliminary end of a long ordeal, as Mexx sales halved in recent years, and the shops had difficulty competing against cheaper competitors.

In its best days, the group made a turnover of over €1 billion, but things started to go downhill after the departure of founder Rattan Chadha in 2006, according to De Morgen. More recently, Mexx had to last year close its flagship store on Kalverstraat in hometown Amsterdam, and in March its European webshop also closed.

The bankruptcy is partly due to the general malaise in the European retail market and the rise of e-commerce. But it is also due to Mexx’s focus on a previously booming middle class of consumers who are now feeling the crisis and reaching for low-cost brands, or buying less.

Written by Robyn Boyle

Comments

Mikek1300gt

Classic example of why wise investors invest in people behind the business. Oh, and an example of the Eurozone going down the pan.

Dec 5, 2014 12:30
acsonline

Mexx used to be a fairly typical "from rags to riches" venture importing clothes from India and the Far East, that never really picked up. Its foreign management eventually left it to Charly and launched a "luxury" catering and hotel instead, in "some of the most exciting cities of the world" ( New York etc.). The disappearance of Mexx chain will hardly create a stir, clothes shop popping out of the ground like mushrooms, particularly in towns frequented by lots of young people. Students may even prefer a decent coffee shop instead!

Dec 5, 2014 17:43