BUSINESS

Mexx Goes Bankrupt, Affecting 95 Canadian Stores

12/05/2014 12:12 EST | Updated 02/04/2015 05:59 EST
CP
The shakeup in women’s fashion merchandising continues with the bankruptcy of Dutch fashion chain Mexx.

On Thursday, a judge in the Netherlands declared the chain, with 315 stores worldwide, bankrupt.

Mexx had a strong presence in the Canadian market with 95 corporate-owned stores in Canada, many of them in Quebec.

In a press release, chief creative officer Julia Hansen cited deep discounting in the fashion sector in Canada as part of the reason for the bankruptcy.

“The trading business has been challenged by the slowdown in orders and retail sales, particularly in Europe, with the impact of the Russian currency depreciation, the Eastern European political unrest, and by promotional pricing pressure in Canada,” the release said.

Stores are expected to remain open for some time while the chain sells off merchandise.

Mexx was purchased by Liz Claiborne in 2001 and sold off 10 years later to U.S.–based private equity firm The Gores Group.

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