Swedish fashion retailer MQ files for bankruptcy (updated)
16/04/2020 09:33
* MQ cites plunging sales amid coronavirus epidemic
* Had already been struggling in changing retail sector
* MQ's Joy brand filed for bankruptcy in March
(Adds detail, background)
STOCKHOLM, April 16 (Reuters) - Swedish fashion retailer MQ
MQH.ST will file for bankruptcy on Thursday, the company said,
citing plunging sales because of the COVID-19 pandemic.
MQ had already been struggling in the face of a rapid
transformation of the retail sector and last month filed for
bankruptcy for the smaller of its two brands, Joy, and announced
measures to minimise the impact on the group from the
coronavirus crisis. urn:newsml:reuters.com:*:nFWN2BI07N urn:newsml:reuters.com:*:nFWN2BB064
The company said its decision to file for bankruptcy is
based on a significant decrease in sales in March and early
April, as well expectations of longer-term impact on the
consumer market even after the COVID-19 pandemic.
MQ's online sales have not offset reduced sales in physical
stores, it said, adding that it does not think it possible to
obtain additional financing and that would discontinue plans for
a previously announced rights issue. MQ had 159 physical stores
in Sweden by the end of February.
"The additional actions to reduce costs in this pandemic are
not considered sufficient, given an already challenging economic
situation. Nor has it been possible at present to access
governmental loan guarantees through the company's creditors,"
it said.
The Stockholm bourse on Wednesday suspended trading in MQ's
shares. urn:newsml:reuters.com:*:nFWN2C301M
MQ's sales in the three months to the end of February shrank
10% to 382 million crowns ($38 million).
($1 = 10.0438 Swedish crowns)
(Reporting by Anna Ringstrom
Editing by Johannes Hellstrom and David Goodman)
((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74; Reuters
Messaging: anna.ringstrom.thomsonreuters.com@reuters.net))