The famous fashion brand will close all its stores in Hungary at the beginning of June.
Orsay will close all of its 33 stores in Hungary by June 10. The clothing store’s website says that due to the economic impact of the coronavirus pandemic, they have been forced to cease operations in Hungary. They also reminded customers that they have until 10 June to redeem Orsay gift cards and Orsay Club vouchers.
forced to close
“Dear customers, unfortunately the adverse economic effects of the coronavirus pandemic have caught up with us and we are sad to inform you that Orsay is forced to close its Hungarian operations before June 10, 2022.”
writes Orsay, which has 33 stores in the country.
For non-defective products purchased in the store, the possibility of return or refund will be eliminated as of May 30, Index writes.
Financial problems
According to hvg.hu, it was already clear that Orsay was in trouble. In early May, Forbes reported that the company was facing funding problems. The turnover of the Hungarian subsidiary, MDO Kereskedelmi Kft., fell significantly after 2019, and the company closed 2020 with a loss of HUF 1.3 billion (~3.3 million euros).
On May 4, it was announced that the Hungarian online store would be temporarily closed.
Orsay’s troubles abroad
Orsay, which has 705 stores in 34 countries, is not only in trouble in Hungary: a similar process has occurred in Austria, where its local subsidiary declared itself insolvent a few weeks ago.
In Germany, the parent company was already saved from bankruptcy in June 2021 thanks to a government loan of EUR 33 million (HUF 13 billion), but even with that, they went bankrupt in November.
As Index reports, Orsay is currently owned by a French business group, Mulliez (its business portfolio includes Pimkie and Decathlon, among others). The group is currently looking for a buyer for the company, but their future seems very uncertain at the moment.
The only certainty is that they will close all their stores in Germany and Poland (197 in Germany and 130 in Poland) at the beginning of July.
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Font: hvg.hu, Index, Forbes
Source: dailynewshungary.com