Only 15 of Leen Bakker’s 44 Belgian stores have found buyers, leaving the remaining locations likely heading for bankruptcy and signaling the end of the furniture chain’s presence in Belgium.
Competing retailer Jysk will take over 7 stores, while others will go to brands such as Zoli99, Swiss Sense, Dreamland, Dreambaby, and Chaussea, according to parent company Homefashion Group.
The restructuring process, supervised by the court since August, was intended to shield the chain from immediate bankruptcy, but the deadline to secure buyers expires on December 7.
The court is expected to approve the sale of the 15 stores on Wednesday. With no candidates for the other locations and two-thirds of Belgian stores reportedly loss-making, Homefashion Group admits that Leen Bakker’s operations in Belgium will likely cease entirely.
The collapse will cost 270 of the company’s 300 Belgian employees their jobs. Although the Dutch operations remain unaffected according to the owner, Leen Bakker has also been struggling in the Netherlands, prompting speculation that the parent company may attempt to sell that branch as well.
The crisis comes amid wider troubles in the home-furnishings sector, following earlier bankruptcies such as that of Casa.
