UPDATED: Mexx has released a tight deadline for its store closings. The company has publicly said they plan on closing at least 95 stores in Canada by the end of February 2015. Giving the retailer less than two months to sell their stock and move out of it’s retail location.
Another one bites the dust.
The dutch clothing company Mexx has filed for bankruptcy in Canada, which will see 170 of it’s Canadian locations close down for good.
The retailer has been struggling in the past few years. Fierce competition in the fashion retail market and a lackluster selection had shoppers walking past the store season after season, with Mexx unable to draw new clients into their stores.
Julia Henson, the president and chief creative office of Mexx, admitted to media that the Dutch chain had not kept its cool factor.
“Admittedly, we have fallen behind the eight ball, staying with the style and trend, positioning us as a unique and distinct brand,” Hansen told reporters in May.
According to a news release, the chain made the decision in light of a “slowdown in orders and retail sales” worldwide and the impact of “promotional pricing pressure in Canada.”
We are deeply saddened by this turn of events for the company,
Hansen said in the press release. “The Mexx brand has a special place in the hearts of consumers globally and the response to the new collections had been so encouraging.”
The company was purchased by Liz Claiborne in 2001 and sold 10 years later to U.S. private equity firm Gores Group. The stores are expected to stay open during the holidays while the group seeks a buyer, Women’s Wear Daily reported.
The company has 2,800 employees and over 315 store locations worldwide. It is not immediately clear when Mexx stores will begin closing down.
This news comes on the heels of another retailer, Smart Set, which is set to close 107 locations in Canada. Before that was the announcement that clothing chain Jacob will be shutting down operations, as well as the Sears Canada closures that saw much of their retail space sold off (including their flagship anchor in downtown Toronto) and a massive layoff of employees.
With all the store closings and brands struggling to stay afloat, we can only wonder: Who will be next?