Gores’ Mexx goes bankrupt

The court has appointed Frits Kemps, a partner in the corporate law practice for Fort Advocaten, as administrator.

The bankruptcy relates to three Mexx holdings: Mexx Holding Netherlands, Mexx Europe and Mexx Europe International.

The Dutch retailer's 315 stores across Europe are set to remain open for now, in the hope of selling off its remaining stock and potentially attracting a buyer.

Gores provided the following statement regarding the bankruptcy: "Mexx was struggling when Gores bought it. A number of changes and improvements were made during its ownership of the business, but unfortunately they were not enough to overcome the effects of Europe's long-running double-dip recession – and the recent rapid decline in Eastern Europe. As a result, sadly, there was no choice but to liquidate the business worldwide.

"Gores maintains a lien on the brand, which it expects to secure the ownership of in the bankruptcy process, and has several options for maximising value."

Mexx has had a turbulent few years, seeing a cycle of CEOs coming and going. In May 2012, CEO Thomas Grote left the business – having been at the helm from 2009 and at the time of Gores' investment in 2011 – and was replaced by Douglas Diemoz some six months later.

Diemoz stepped down in September 2013 after just 10 months in his role and was replaced by Mark Stone after Gores decided to take the company's leadership into its own hands. Stone is a senior managing director at the firm, as well as president of operations and a member of the investment committee.

The company has also spent the last few years in a "slimming down" phase, closing non-performing stores and whittling down its headcount.

Gores acquired an 81.75% stake in Mexx from US fashion company Liz Claiborne in November 2011. The deal was worth a reported €85m and saw the GP invest via its Gores Capital Partners III fund, which held a final close in February 2011 on $2bn, well surpassing the fund's $1.5bn target.

At the time of Gores' investment, Mexx generated around €520m in turnover. According to the Dutch media, sometime last year Gores bought out the remaining 18.75% stake held by Liz Claiborne to gain full control of the business.

According to unquote" data, CVC invested in the business in October 1990, in a deal valued at around $100m. The GP then sold Mexx to Liz Claiborne in June 2001 for €300m.

Amsterdam-headquartered Mexx is a Dutch fashion retailer with 315 stores across Europe including its own retail stores, franchises and store-in-stores. It is also present in Canada.

The company was founded in 1986 through the merger of men's fashion brand Moustache and women's brand Emanuelle.

According to the Dutch media, Mexx's revenues have recently dropped to around €150m. The company currently employs 1,500 staff, 500 of whom are based in the Netherlands.

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• Topics
• Benelux
• Consumer
• The Gores Group
• Netherlands