The timing is unfortunate. Launching a department store in the Netherlands is difficult enough: V&D did not survive, many other retail chains also collapsed or ran into difficulties. Canadian Hudson's Bay is nevertheless doing everything it can to conquer the Netherlands, but at the same time the company's problems are piling up.
Ailing subsidiary
As Hudson's Bay pumps €300 million into its Dutch entry, the company's European operations are suddenly under pressure. The problems are caused by its subsidiary Galeria Kaufhof. Hudson's Bay bought the German department store chain and Belgium's Galeria Inno in 2015 for a sloppy €3 billion. Since then, it has failed to refloat Kaufhof's 97 stores. In the holiday month of December last year, sales even fell.
Christmas season under pressure
Activist Hudson's Bay shareholders are now demanding that the Canadians pull out of Europe. This malaise naturally rings all alarm bells, including those of credit insurers. Some have recently refused to fully insure suppliers to Hudson's Bay and Kaufhof for delivered items. It puts a bomb under coming Christmas season, for which all clothing and other items have already been ordered.
Supplier solutions
Withdrawing or not providing cover, suppliers face acute risks. While they would like to partner with Hudson's Bay and be in these luxury department stores as a brand, the question arises: at what price?
In such cases, we are happy to think with you. We are able to offer solutions where concrete coverage is realised, despite the retreating attitude of some major credit insurers. Not only for the Hudson's Bay Group, but also for difficult cases such as Blokker and Maxeda (including Praxis).
