Dutch department-store chain Hema has announced that its affiliate filed a Chapter 15 petition in the US Bankruptcy Court for the Southern District of New York.

Chapter 15 promotes cooperation and communication between US courts and parties of interest with foreign courts and parties of interest in cross-border cases.

The filing follows as the company announced on 19 August that 133 scheme creditors voted in favour of the scheme of arrangement proposed by HEMA UK I Limited under Part 26 of the Companies Act 2006 (Scheme) on 15 July.

The retailer noted that it is a key milestone in the implementation of the controlled debt restructuring and recapitalisation of HEMA BV.

Hema is awaiting a hearing of the High Court of Justice of England and Wales. On 24 August, the court will decide whether to sanction the Scheme that will allow completion of further steps to implement the restructuring and recapitalisation.

Hema aims to reduce approximately €400m in debt from its balance sheet and bear the additional challenges brought by the Covid-19 pandemic.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company noted that the decline in traffic and challenging market conditions have negatively impacted the group’s performance.

Hema has seen like-for-like sales and adjusted EBITDA drop in the last two fiscal years.

The retailer also noted that the business is projected to experience an overall decline of 12% in net sales in the financial year ending January 2021.

The retailer operates more than 775 stores in twelve countries, with 19,000 employees.

Last September, Hema partnered with Casino Group’s subsidiary Franprix to sell its product assortments in the latter’s supermarkets in Paris.

Recently, speciality off-price retailer Stein Mart, along with its subsidiaries, filed for Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Middle District of Florida–Jacksonville Division.