The court in Leeuwarden, the Netherlands, has rejected a request for protection from creditors from Big Bazar. The court deems the ‘cooling off period’ of 2 weeks that the chain had requested insufficient to meet all financial obligations. With that, the summons to declare the bankruptcy is once again on the table with the court. About 1,300 people are at risk of losing their jobs.
The bargain chain, which also has 4 branches in Belgian Limburg (Lanaken, Lommel, Tongeren and Sint-Truiden), came into difficulties when a number of creditors demanded bankruptcy due to overdue payments of product deliveries and rents. In an effort to avoid that ruling, the company had filed a request for a cooling-off period. Its approval serves to ward off new applications for bankruptcy and thus enjoy protection against creditors.
But the judge in Leeuwarden has now decided a very reasoned verdict indicates that the request for cooling will not be granted. The court considers the time of 2 weeks too short to reach an agreement with the creditors. Big Bazar can meet the current obligations in the short term, but the overdue invoices – according to the ruling – cannot possibly be paid at this time.
This brings the bankruptcy order closer again. The previously submitted requests for this are now ready for processing. It is not yet clear when the court will now consider these applications for bankruptcy and, if necessary, declare the chain bankrupt.
2023-09-04 17:49:28
#Bankruptcy #Big #Bazar #approaching
