Casa International, which operates a chain of home interior stores, has filed for judicial reorganisation in Belgium as the group is facing severe cash flow issues.
Headquartered in Olen (Antwerp province), Casa International operates around 400 stores across eight countries, including 64 in Belgium. Last year, the group employed 2,500 people, including 415 in Belgium.
While the struggling retailer initiated a recovery plan earlier this year, aiming for profitability by 2026, it has been significantly disrupted by "recent negative developments in the retail market," the group said.
Casa International has now filed for judicial reorganisation with the Turnhout business court in Antwerp.
Under this procedure, a company in difficulty can ask the court for a period of time to get back on its feet, during which it can continue to operate but existing debts to creditors are frozen. The company uses this time to put together a recovery plan to pay off its debts, which must be approved by creditors and the court.
Severe cash flow issues
Casa International is facing severe cash flow issues that "threaten business continuity and require urgent measures," which is why the group said it has sought protection from creditors.
The group has already closed or sold 46 stores in various countries and reduced an unspecified number of staff, both at headquarters and in stores.
"Despite the progress made, Casa International's situation remains fragile due to the unfavourable retail market evolution," the group stated.
Casa International said it is optimistic about improving its cash flow during the Christmas season, which is traditionally strong for sales.
"We will continue to implement our recovery initiatives," said Vincent Nolf, CEO of Casa. "We are 100% ready to work with our staff, social partners, and long-time suppliers to secure a sustainable future for our company."
Though founded and headquartered in Belgium, the group was long-owned by the Blokker family from the Netherlands, before being sold to the Dutch investment group Globitas.
Globitas was later acquired by Swedish-Lebanese entrepreneur Ayad Al-Saffar, who quickly sold it to Frank Pruijn to focus on acquiring Inno stores earlier this year.
Unions ask management for transparency
This situation is quite "familiar" to Casa staff, according to ACV Puls union secretary Johan Van Loon, since the chain had sought creditor protection a few years ago as well.
The Flemish Christian trade union leader stated that this new procedure should have no significant impact on staff or stores.
"The staff realise that change is necessary; doing nothing is not an option," Van Loon noted. "We just ask management to continue communicating transparently."
