KPMG warns of new financial problems at retail chain Blokker

Dutch retailer Blokker is in danger of getting into new financial trouble this fall or next year if its retail chain's results disappoint this year. This is what consultancy and accounting firm KPMG warns about in the annual report of parent company Mirage Retail Group. Blokker and its parent company have been struggling with financial problems for years and have suffered significant losses in recent years.

Last May, Blokker agreed on a three-year refinancing of 35 million euros with the American lender Gordon Brothers, which secured the chain's future. But despite Mirage's improvement plans, the results this year have so far lagged well behind budget. If Blokker's results turn out to be disappointing later this year, KPMG predicts, the chain could face new financial problems. The accounting firm proposes that Mirage sell assets to extend or refinance credit agreements that expire next year to avert the problems.

In the annual report, KPMG writes that Mirage lost 20.7 million euros in its broken financial year, which ran from the beginning of February 2023 to the end of January 2024. Mirage was 86.1 million euros in the red at the bottom line a year earlier. In addition to Blokker, the company owns the Intertoys and Miniso chains in the Netherlands and owned BCC, which went bankrupt last year.

In the annual report, Mirage CEO Ynse Stapert is positive about Blokker's future. He states that the chain achieved higher margins last year thanks to the growth of its own brand. Consumers remain "charmed" by the retail chain, he claims. Regarding the financing of Gordon Brothers, he writes that he is "convinced" that this will "provide stability and a platform to improve top performance and successfully execute our business plans."

Last year, under the leadership of former CEO Michiel Witteveen, Mirage wanted to sell Intertoys, Blokker, and BCC. However, the sale of the toy store chain ultimately did not go through. In February, Stapert, who had just taken over management, reported that the sale had fallen through at the last moment. The company then decided to withdraw the toy store chain from sale for a year.