The echoes of the economic crisis are still reverberating in the Czech Republic, and it is not excluded that we are headed for a protracted recession or at least stagnation. In such an environment, businessmen do not do very well, because people turn over every penny and look for the cheapest possible offers, on which businessmen do not have any margin. After all, in this and last year we have already seen some of the collapses of previously stable companies, and it is not excluded that this will continue in the future.
The company is collapsing
The Studio Moderna retail chain, which is behind popular brands such as Delimano, Dormeo or Top Shop, which operates individual stores under these brands, seems to be in big trouble. As has emerged in recent weeks, this international group is in serious financial trouble and has already been declared bankrupt in its homeland.
It is not doing well in the Czech Republic either, where a proposal for bankruptcy was filed, which is usually done by bankrupt companies that can no longer pay their debts. In the case of this retail chain, it even went so far as to stop paying wages to its employees. And then it’s a carousel from which there’s not much escape. Suppliers refuse to provide the company with goods on invoice, as is customary, and require payment in advance. However, the company does not have the money for that.
At the same time, it is interesting that the company tried to turn around the unfavorable situation and improve its financial balance in the last campaign. Therefore, it entered into cooperation with the Kaufland retail chain, where it offered its goods under favorable conditions. However, the event was not a success, there was no interest in the product and it was sold 50% less than planned. In this activity, however, Studio Moderna invested a significant part of its last resources, among other things for promotion, and so rather than a rescue, it was ultimately the last straw.
Foto: Shutterstock
Will someone take over the stores?
The company owes huge sums in the tens of millions to Kaufland and also to its suppliers. However, the entire international group is in trouble, so everything had to be much deeper and more structured. Studio Moderna is now trying to save business in at least some countries, which should be helped by the sale of activities in others. It is possible that this will also apply to the Czech Republic and someone will take over the operation of these stores there.
These are relatively strong brands. For example, Dormeo has built a decent position in the domestic market for mattresses and quality sleep products. Delimano stores then offer a wide array of smaller appliances and kitchen supplies.
Read also: Czechs have matured into chain stores. They buy with a 95% discount, but the stores don’t like it
These stores also use internet sales, where you have to be careful anyway, especially if you are ordering more expensive items. It pays to take it on cash on delivery rather than with payment in advance, because in the event of a crash, you would not have to wait for the products or the money.
Foto: Shutterstock
2023-10-21 07:00:00
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