Clothing brand Mexx bankrupt

The Dutch fashion chain Mexx has declared bankruptcy. The group had been struggling financially for some time. Its 315 stores, including some 70 in Belgium, will remain open for the time being in order to sell off some of their remaining merchandise.

Mexx shops, found in most Belgian shopping areas, will eventually disappear, after a court in Amsterdam declared the company bankrupt on Thursday. The court decision is the preliminary end of a long ordeal, as Mexx sales halved in recent years, and the shops had difficulty competing against cheaper competitors.

In its best days, the group made a turnover of over €1 billion, but things started to go downhill after the departure of founder Rattan Chadha in 2006, according to De Morgen. More recently, Mexx had to last year close its flagship store on Kalverstraat in hometown Amsterdam, and in March its European webshop also closed.

The bankruptcy is partly due to the general malaise in the European retail market and the rise of e-commerce. But it is also due to Mexx’s focus on a previously booming middle class of consumers who are now feeling the crisis and reaching for low-cost brands, or buying less.