The retail chain Hema in the Netherlands has been struggling under the load of heavy debts for years, but the coronavirus crisis has deepened its problems. Nearly all of its locations in foreign locations had to close down during the lock down period, while turnover in the home branches fell as well. While most of its shops have since reopened, turnover is down significantly.
With an estimated €800m in debts, it’s believed the chain now has no hope of paying them back, leading creditors (primarily hedge funds) to attempt to seize control of the company. In return, they are allegedly prepared to forgive €300m of the debt. The creditors have submitted their proposal to Hema’s management.
