The drama surrounding the rescue of the Dutch Hema retail chain deepened this week as the government joined the battle. The Ministry of Economic Affairs and Climate has hired the investment bank Lazard to advise it on whether offering loan guarantees would be effective or useful. Hema has struggled with debt for years, but the recent crisis and lock down has meant the situation is now grave.
Negotiations between Hema and its creditors haven’t yielded much as creditors ABN Amro, ING and Credit Issue aren’t keen to increase their exposure to the company in an attempt to save it. Just why the government should get involved saving a non-strategic company like Climate isn’t clear. Nor is everyone convinced the company’s billionaire owner deserves a bailout.
