On Friday, the Prague City Court began a review of the secured debts that have been registered by suppliers of the troubled fashion e-shop Zoot, making it through CZK 672m of the CZK 761m total. There were mistakes made in some of the claim, meaning the court will have to return to them at a later date. Those who have unsecured debts with Zoot (CZK 310m in total) as well as bond holders (CZK 239m) will receive just 10 percent of what they’re owed under the terms of an approved restructuring plan. One-third of the company’s staff has been laid off, while a third of its pick-up points were also closed. Czech Radio reports that in the period since Zoot collapsed at the beginning of the year, two new foreign competitors have moved in: Alando and About you. Ondřej Klega, director of the investment company eRocket, says Zoot’s competitors have all the momentum with them now. “What it took Zoot eight years to go, meaning building up to CZK 1bn in revenues from fashion sales, Zalando and About you have done in just a few months.” Zoot was saved from bankruptcy by the investment group Natland, which provided it with operating capital and installed crisis managers.
