In a press release on Saturday, Duror Fashion Group announced its decision to close its accounts due to financial difficulties. The announcement means that over 150 employees will lose their jobs and 29 stores will be closed temporarily.
Duror Fashion Group is well-known for its various fashion brands, including Terre Bleue, Gigue, and Zilton. Terre Bleue is a popular high street brand, Gigue was founded by Jo Wyckmans and caters to preppy styles, and Zilton is a men’s fashion label. The family business has been in operation since 1938 and led by Peter Perquy for the past five years struggled to manage its debt burden.
Several factors contributed to Duror’s financial challenges, including the impact of the coronavirus pandemic, the war in Ukraine, rising energy and raw material prices, inflation, and unpredictable weather conditions. The competitive nature of the fashion market with the rise of fast fashion webshops like Asos or H&M also played a role in the group’s downfall.
Brands were also sold in multi-brand boutiques which faced increasing pressure from larger retailers as they shifted their focus towards e-commerce platforms such as Amazon or Etsy. The decline in independent fashion retailers accounted for a significant portion of Duror Fashion Group’s turnover added to the difficulty as consumers shifted preferences towards luxury brands or second-hand sales platforms like Vinted. Brands positioned in the mid-range segment were particularly vulnerable to market factors as consumers shifted preferences towards luxury brands or fast fashion options.
Despite efforts to reduce costs and increase turnover in recent years, Duror Fashion Group could not secure an agreement with its financiers to extend loans. The loans obtained during the COVID-19 crisis were set to expire on June 30th 2024 creating a pressing financial deadline for the company
