Fashion, Features

Mexx Files For Bankruptcy

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International clothing retailer Mexx filed for bankruptcy at a court in Amsterdam Wednesday. The company will close all of its stores, including "all entities" in Canada. The Canadian website lists 90 stores "and counting." In a news release, the company cited slowdowns in retail sales, particularly in Europe, the Russian currency depreciation, the political unrest in Eastern Europe and promotional pricing pressure in Canada as reasons for its closing. The company was founded by Indian-born Dutch businessman Rattan Chadha in Amsterdam in 1986. It has 2,800 employees worldwide, including 2,250 in Mexx operated stores. It is unclear when the Canadian stores will close their doors. JoAnne Labrecque, a marketing professor at HEC Montreal, says retailers have no choice but to compete online and in traditional stores. The problem traditional retailers are facing now is that many didn’t have transactional websites, or websites where consumers could purchase goods, when they set up their webpages, she explained. “Those who are not on the net and have traditional stores, it’s becoming for difficult for them to compete because there’s an increasing proportion of sales, especially with the fashion industry, that are made on the net,” she said.    

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