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‘Everything must go’ discounts
By Mathijs Smit · 3 hours ago · Edited: 3 minutes ago
© Mathijs SmitRTL
The bankrupt household chain Blokker started a bankruptcy sale last weekend. This has not gone unnoticed by bargain hunters: the shops are considerably busier than before.
It’s going fast. Blokker was declared bankrupt last Wednesday, and the bankruptcy sale already started last weekend. Colorful, flashy sale posters hang on the facades of most of the 394 branches with texts such as ‘Everything discounted’ and ‘Everything must go’. In the stores, cards with the discount percentages are pasted on the shelves with items. These are still limited at the moment; 10 to 15 percent.
Blokker’s 45 franchise locations, which are owned by independent entrepreneurs, are not participating in the bankruptcy sale. This is confirmed by franchisee René Hilbrands of Blokker in Gemert. “The franchisers are independent and are not subject to bankruptcy. We do not participate in the discounts.”
Possible restart
Blokker finally went bankrupt last week after years of losses – and despite numerous attempts to make the company healthy again. Curators Jasper Berkenbosch and Robin de Wit must settle the bankruptcy, and are examining the options for selling parts of the store chain to a new owner.
But in the meantime, Blokker’s stocks have already gone on sale. In response to questions from RTL Z, the curators confirm that the bankruptcy sale has started and say that it will probably last until the end of this year.
Discounts
“The stores will remain open until the end of the year,” the curators said. “There will also be a sale during this period. Depending on developments, we will regularly review how to implement this. We therefore cannot say anything concrete about when and where which discounts apply.”
The American ‘vulture financier’ Gordon Brotherswhich gave the retail chain a loan last May, received the stocks as collateral. The proceeds from the bankruptcy sale will therefore probably largely disappear into the pockets of American financiers.
Lucrative clearance sale
Business newspaper the FD reported on Thursday, based on an anonymous source, that the expected bankruptcy sale will be led by the same Gordon Brothers. The American company not only provides loans to ailing companies, but also arranges for the sale of bankrupt companies.
They can also earn a lot from bankruptcy sales. Earlier this year it emerged that industry rival Hilco received more than one million euros for organizing the empty sale of the bankrupt sports store chains Perry Sport and Aktiesport.
In their response, trustees Berkenbosch and De Wit write that Gordon Brothers is not leading the bankruptcy sale, but is “advising on the approach” to it.
© Mathijs Smit
How might Blokker’s bankruptcy and the associated ‘Everything Must Go’ discounts influence the strategies of other retail chains facing similar challenges in the current market?
As a website editor for world-today-news.com, I would be delighted to conduct an interview about the recent bankruptcy of Blokker and the ‘Everything must go’ discounts currently taking place in their stores. My guests for this interview will be two experts in the field of retail industry and bankruptcy: Mr. Mark Yates, a finance professor at Harvard Business School, and Ms. Olivia Johnson, a retail analyst at Bloomberg Intelligence.
Section 1: The Impact of Blokker’s Bankruptcy Sale on the Retail Industry
Expert 1: Professor Mark Yates, what are your thoughts on the impact of Blokker’s bankruptcy sale on the retail industry in the Netherlands and Europe as a whole? How common are these types of sales, and what does it say about the current state of the retail market?
Expert 2: Olivia Johnson, as a retail analyst, what do you think are the possible reasons for Blokker’s bankruptcy, and is this likely to set a precedent for other retail chains struggling in today’s market? Additionally, how do you see consumer behavior changing during such sales? Will it be a lucrative opportunity for bargain hunters or lead to an overcrowded market?
Section 2: Effects of ‘Everything Must Go’ Discounts on Customers and Franchisees
Expert 1: Professor Yates, from a financial standpoint, what are the potential benefits and drawbacks of these massive discounts for both customers and franchisees? Can the franchisees survive without participating in the sale?
Expert 2: Ms. Johnson, do you foresee any legal implications for Blokker’s franchisees who are not participating in the bankruptcy sale? Furthermore, what effect do you think this will have on consumer confidence in the franchise system as a whole?
Section 3: Future Prospects of Blokker and its Brand
Expert 1: Professor Yates, what are the possible outcomes for Blokker’s brand in light of this bankruptcy sale? Could it be bought by a competitor or revived under new ownership, or is it likely to disappear completely?
