One shuts down, one sells: retail to change, from Burberry to El Corte Inglés

Several changes, actions and countermeasures are underway in the European retail business. In the United Kingdom, Burberry are the ones who are going to start the dance: in fact, the fashion house announced the closure of 38 sale stores, which are not of strategic importance in a long-term outlook. At the same time, they will turn the most profitable shops into luxury hubs, while opening 30 pop-up stores all around the world. In the meantime, in Germany Schuhpark Fascies are due to start their own refurbishment: in fact, creditors agreed on the reorganization scheme filed before the district court in charge, in Münster. Thanks to such plan, the company will manage to save 750 job positions; in doing so, the chain will go on, into receivership.

What about Bree?

At times stories do not have a happy end unfortunately. On Wednesday, Bree, the German bag manufacturer, submitted a petition before the court of Hamburg to start a “self-management insolvency” proceeding, which is similar to receivership somehow. Last year Bree relocated the company offices from Hannover to Hamburg, therefore reducing the number of their employees (there are about 200 left at present) and focusing on online sales, which only drove 5% of the overall turnover though. The brand is now seeking a “reliable investor, internationally renowned in the industry”. Things are not going any better in Belgium: here Coccodrillo, a luxury men and women’s footwear store, which had been running in Antwerp for 36 years, has just shut down. In the owners’ opinion, “the discount culture”, together with pushing promotions and prices off, carried out throughout the year, did jeopardize profitability in the end.

Spanish sales

Bad news from Spain as well: in fact, El Corte Inglés department stores have put 96 properties up for sale: overall selling price is 1.5 billion euros. Buyers may submit their takeover bids from May 23 onwards. The aim of the sale is to make money to limit the brand’s bank exposure.

 

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