Euro Shoe Group, a family business founded in 1925 and operating 117 Bristol shoe stores in Belgium, is facing financial difficulties. The Antwerp corporate court’s Hasselt department initiated proceedings for the judicial reorganization of the company on Friday. The court has appointed three settlement experts whose responsibility is to identify potential buyers for all or parts of the assets and activities.
The purpose of this procedure is to transfer, under judicial authority, all or part of the company’s activities. Euro Shoe Group has been granted protection from creditors until September 7. The company had requested a judicial reorganization at the corporate court in Hasselt in hopes of maximizing employment retention, which was stated last week.
The challenges that Euro Shoe Group has been facing include store closures during the COVID-19 pandemic, as well as increasing rent and energy costs. Although there was a glimmer of hope in 2022 with the first operational profit in years, the company’s struggles returned in autumn of 2023. The company employs around 170 people at its headquarters and warehouse in Beringen, and the stores are operated by independent individuals.
Euro Shoe Group’s sale will be overseen by three settlement experts who will ensure that proceeds are used to pay wages and creditors. This procedure will allow Euro Shoe Group to transfer its activities under judicial authority and potentially find new owners who can help revive the struggling business.
