The owner of C2H retail group Michal Mička said that the company entered insolvency proceedings due to coronavirus. The group owns the Kara and Pietro Filipi fashion stores
The E15.cz server stated on Monday that the C2H group owes around 722 million crowns. The main creditor is Česká spořitelna. Negotiations on new investors were unsuccessful.
Czech fashion brand Pietro Filipi will lay off all employees of its 23 stores. According to the latest financial statements, Pietro Filipi Stores employed 138 people at the end of 2018. At the end of 2018, another 64 people worked for the company Pietro Filipi sro, which procures clothing designs for the brand.
The dropout of last year’s sales at Kara amounts to 200 million crowns while Pietro Filipi turnover fell to 227 million crowns from the previous 434 million in 2019.
Employees of Pietro Filipi stores received a letter in January the day before payment stating that they were out of work and without money. “The employment relationship with you will be terminated,” according to the daily, the company’s human resources director Jan Zipser wrote to the employees.
“Pietro Filipi Stores does not have funds left in the account, so unfortunately we will not be able to pay wages for December 2020 or for the following months”.
The company, therefore, writes to employees that they would rather terminate their employment by the agreement at the end of January. “You will be entitled to severance pay. It will not be paid, but from February 1, 2021, you can apply to the employment office. There you can ask for compensation for severance pay,” the company states in the letter.
C2H Retail Holding had a loss of 117 million crowns in the first half of the year, according to preliminary unaudited figures published by the company. It is also clear from the results that the company has struggled with profitability before.
In addition to the current delay from the first half of this year, the group is rolling back a cumulative loss of 143 million crowns from previous years.
Last year, the holding had a consolidated loss of 62 million. Revenues of the group in the amount of 895 million crowns remained 40 million below the plan.