Closed stores and shopping centers broke the ties of two well-known Czech fashion brands.
Closed shops and shopping centers broke the link with two well-known Czech fashion brands, which are also known to Slovaks. After an unsuccessful attempt to find an investor, they go into insolvency Pietro Filipi a Kara. Holders of C2H parent group bonds can also lose money.
Decades of existence
“There is interest from investors, but the negotiations are taking longer than it would be healthy for the company to continue to operate. In addition, the agreements with the secured creditor and the investor are delayed, which is why we filed for bankruptcy on Sunday. “ stated the head of the C2H group Michal Mička.
Pietro Filipi has been in existence since 1993 and specializes in the design, manufacture and sale of men’s and women’s clothing. Kara’s history dates back to 1948.
The company specializes in leather and fur products. Both brands had almost sixty stores in the Czech Republic. Michal Mička has owned them since 2017 and 2018, respectively.
Like other retail chains, Pietro Filipi and Kara have been hit hard by anti-epidemic measures. Stores, which account for 90 percent of turnover, were closed most of the year. And the group’s sales fell by half.
Rescue from Slovakia?
Just a few weeks ago, an investor from Slovakia – Penta expander Jozef Špirko, who is behind the investment group Aspin, was also in the game. It has a network of Ozeta stores and the Otto Berg brand in its portfolio. “We are convinced that we would be able to save the Pietro Filipi brand and maintain its retail network for customers,” said Špirko for Slovak Forbes. However, the condition of the financing bank was also a condition.
In the Czech Republic, another fashion chain also got into trouble for closed stores, Blazek. The company announced the start of insolvency at the end of December. However, its owner Ladislav Blažek, unlike Mička, managed to reach an agreement with the largest creditor, Komerční banka. And he was given three years to reorganize the company.
The cezeta ends
The pandemic also tripped the manufacturer of electric scooters Čezeta, who fell into insolvency on Tuesday and will end production. According to the insolvency register, total liabilities amount to more than CZK 13 million (EUR 5,05090) and exceed the value of the company’s assets by approximately CZK 8 million. The company could not find a buyer and its current owners were not willing to provide enough cash to continue operations.
The information of the E15 daily was confirmed by the boss and majority owner of the company, Neil Eamonn Smith, stating that the company no longer has money. “Due to the strong competition in the market, the project required a lot more money than we had available,” dodal Smith.
Cezeta has been looking for a new owner all last year. According to Smith, in order to increase the company’s competitiveness, capital was needed, which neither he nor his partners had at their disposal.
Back in September, the manufacturer announced on its website that the subject of the sale was a start-up business that could compete with the legendary Vespe worldwide. The British living in the Czech Republic added that the losses of the start-up company gradually decreased in the years 2018 to 2020.
The famous “pig”
Eight years ago, the company came up with a prototype electric scooter, which was based on the famous “pig” produced by the ČZ plant in the 50s and 60s.
Between 2018 and 2020, the company produced the first series of 60 506 scooters, which it exported to 10 countries in Europe. It sold one motorcycle in the Czech Republic last year and 13 machines the previous year.
Dozens of employees assembled electric motorcycles in the Wikov complex in Prostějov. The expansion plans included up to 50 employees and the production of 2,000 machines per year. Prior to the insolvency, Čezeta worked on the development of a new model, which would be half cheaper than the current one and would cost approximately CZK 150,000.
Source: Dnes24.sk by www.dnes24.sk.
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