Saturday, December 6, 2014

95 Canadian stores to shut down as Mexx go Bankrupt

A Mexx store is pictured in Toronto April 19, 2010. Wholly-owned subsidiary of the Liz Claiborne fashion company, Mexx is a clothing chain and design firm that sells clothing and accessories for men, women, and children. The Canadian Press Images/Francis Vachon

The shakeup in women’s fashion merchandising continues with the bankruptcy of Dutch fashion chain Mexx.

On Thursday, a judge in the Netherlands declared the chain, with 315 stores worldwide, bankrupt.

Mexx had a strong presence in the Canadian market with 95 corporate-owned stores in Canada, many of them in Quebec. It also had a warehouse in Montreal and its designs were carried by The Bay.

In a press release, chief creative officer Julia Hansen cited deep discounting in the fashion sector in Canada as part of the reason for the bankruptcy.

“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,” the release said.

Stores are expected to remain open for some time while the chain sells off merchandise.

Mexx was purchased by Liz Claiborne in 2001 and sold off 10 years later to U.S.–based private equity firm The Gores Group.

No comments:

Post a Comment