The Cassis clothing chain is facing closure of nine stores, resulting in 67 job losses, according to a special works council. The affected stores are located in Kuurne, Sint-Niklaas, Wijnegem, Brussels, Tournai, La Louvière, Waver and Liège. Employees have been informed not to report to work until the bankruptcy is officially declared, which is expected to happen on May 27.
The closure was not unexpected as the Cassis & Paprika group had initiated a judicial reorganization procedure earlier in the year due to financial difficulties. The court has approved a reorganization plan for the Paprika and Cassis-Paprika brands, allowing them to continue operating under a single brand name with a focus on women’s fashion in larger sizes.
The CEO of the chain stated that the restart will save approximately 600 jobs or 90% of the total workforce. Although the union has confirmed that nine out of ten jobs will be saved, they remain concerned about the company’s financial future and plan to closely monitor the situation. The debts of around 28 million euros are still unresolved and it is unclear how they will be addressed.
Last summer, the Walloon Region provided financial support to the clothing chain through Wallonia Entrepreneurship. However, the region will not be involved in the chain’s restart and it is unknown how much loss has been incurred by them. The union will continue to keep a close eye on the company’s financial status moving forward.
It seems like this closure was not an easy decision for anyone involved but it was necessary for saving jobs as well as keeping an eye on company’s future financial stability.
