Dutch clothing brand Mexx has filed for bankruptcy, blaming “macro-economic headwinds” for management’s inability to implement a plan to turn around the company’s financial fortunes.
In a statement issued Thursday, company president and CEO Julia Hansen said Mexx filed for bankruptcy on Wednesday “for all entities in The Netherlands and Canada.”
The company has dozens of Canadian stores, which will remain open for an undetermined amount of time.
The company’s owner, private equity firm The Gores Group, purchased a majority share in Mexx in 2011, and had put in place a “turnaround plan” for both its European and Canadian operations.
The plan included building an e-commerce business, and “Canadian improvement.”
However, while the company “received very positive industry and consumer reactions to the renewed product vision, the macro-economic headwinds hampered its ability to effectuate the company’s turnaround plan,” read the statement, issued Thursday.
According to Hansen, the response to the company’s latest collections had been “encouraging.” But global factors ultimately led to the company’s declining economic fortunes.
“The trading business has been challenged by the slowdown in orders and retail sales, particularly in Europe, with the impact of the Russian currency depreciation, the Eastern European political unrest, and by promotional pricing pressure in Canada,” Hansen said.
Founded in 1986, Mexx now has 2,800 employees, with 2,250 working in its stores worldwide.
