The Belgian subsidiary of French fashion retailer IKKS has filed for bankruptcy, putting dozens of jobs at risk, . The collapse of the Belgian operation follows a period of financial difficulty for the wider IKKS group, which entered judicial administration in .
According to reports, the bankruptcy will result in the closure of approximately ten IKKS-owned stores in Belgium and the loss of several dozen positions. However, franchise locations are expected to continue operating. This outcome represents a setback for the company, despite a recent restructuring effort in its home market of France.
In , IKKS secured a buyer for a significant portion of its French business. Santiago Cucci, chairman of HoldIKKS, and Michaël Benabou, co-founder of Vente Privée (Veepee), agreed to acquire 219 stores and safeguard 546 jobs. This deal, however, covered less than half of the retailer’s total footprint of 473 stores and 1,287 employees across twelve countries at the end of . The failure to extend this rescue package to Belgium underscores the challenges facing the company.
The broader IKKS group had been grappling with financial headwinds for some time. In , the company announced a job-saving plan (Plan de Sauvegarde de l’Emploi, or PSE) in France, initially proposing the elimination of 202 jobs out of a workforce of 1,328 and the closure of 77 stores and corners out of 604. The redundancy plan affected 140 positions, with approximately 60 employees redeployed.
The company attributed its difficulties to a confluence of external factors, including the COVID-19 pandemic, the war in Ukraine – where IKKS had a substantial presence – and persistent inflationary pressures. These challenges impacted the entire ready-to-wear sector, according to the company. A €30 million cash injection was reportedly provided to support the brand’s return to profitability.
IKKS, founded in , operates as a high-end ready-to-wear brand for women, men, and children, characterized by its “Rock DNA.” The group encompasses the I.Code, One Step, and IKKS brands and maintains a global presence with approximately 600 sales outlets and 1,500 employees worldwide. The company had previously secured debt forgiveness from creditors and fresh investment in , but these measures proved insufficient to prevent the Belgian subsidiary’s collapse.
The judicial administration process, initiated in France in , included an observation period scheduled to run until . This procedure initially concerned only the company’s French operations, but the subsequent bankruptcy in Belgium highlights the potential for wider repercussions. The situation underscores the vulnerability of even established brands to macroeconomic shocks and shifting consumer behavior.
The bankruptcy in Belgium raises questions about the future of IKKS’s operations in other international markets, particularly Luxembourg, where the company also has a presence. While the French restructuring offered a temporary reprieve, the ongoing challenges suggest that further consolidation or restructuring may be necessary to ensure the long-term viability of the IKKS group.
The impact on Belgian retail is also noteworthy. The closure of ten IKKS stores will contribute to the ongoing challenges faced by brick-and-mortar retailers in the region, which are grappling with increased competition from online retailers and changing consumer preferences. The loss of jobs will further exacerbate economic pressures in the areas affected by the closures.
