Ailing Dutch department store chain V&D has been saved from bankruptcy after its owners, banks and landlords reached agreement over the weekend on how to solve the group’s short-term financial problems.
Ailing Dutch department store chain V&D has been saved from bankruptcy after its owners, banks and landlords reached agreement over the weekend on how to solve the group’s short-term financial problems.
However, the agreement does not yet include the unions, which have refused to accept a structural pay cut of around 5.8% and threatened to take V&D to court if the cuts are forced through. Talks with the unions continued on Monday.
Under the accord reached over the weekend, the owners of V&D’s 63 high street stores have agreed to lower rents to generate savings totalling nearly €30 mln, while V&D's US private equity owner Sun Capital has pledged to invest €60 mln in the chain, up from the €40 mln promised earlier.
IEF Capital, which is 50%-owned by Rabobank, went to court last week in a bid to have V&D evicted from its stores following non-payment of rent. The court was due to issue a verdict in the case on Friday, but IEF Capital asked for the ruling to be postponed pending the outcome of further talks.
Property adviser Cushman & Wakefield played a mediating role in the conflict and led the talks between V&D, the banks and the landlords.
