Etam Group asks for bankruptcy protection

Dutch fashion group Etam has asked for court protection from creditors to avoid bankruptcy. The high street chain has some 200 outlets in the Netherlands and operates the Miss Etam and Promiss labels.

According to ANP, the retailer is hoping to be able to re-launch with new investors, after having been running at a loss for years.

As reported by Dutch media, lately Etam has invested heavily in developing its e-commerce while attempted to negotiate with its landlords to lower down its rents.

Etam Groep has asked the court in The Hague for deferred payment because of "the increased pressure in the Dutch fashion retail market and eCommerce's strong surge", the group announced Thursday in a note.

“Despite the organisational restructuring and cost reductions, Etam still has not managed to adapt to the altered market situation", management admitted in a press release, reassuring though the company’s staff by saying that "Etam Groep's employees will continue working for the time being and get paid accordingly."