Blokker parent company Mirage Retail Group files for bankruptcy

Mirage Retail Group (MRG) has filed for bankruptcy at the Amsterdam District Court. The bankruptcy is the direct result of subsidiary Blokker going bankrupt, MRG said.

According to MRG, it is liable for debts of its subsidiaries. “In addition, MRG has issued guarantees for Blokker’s rental obligations for several lease agreements. Based on this, Blokker’s landlords have submitted claims to MRG. In addition, MRG is liable for part of Blokker’s outstanding coronavirus debt to the Tax Authority of approximately 13 million euros,” the company said in a statement to BNR.

MRG has some money coming from the sale of Intertoys. In October, Belgian retailer ToyChamp approached MRG about taking over Intertoys, which has been part of MRG since 2019. Intertoys has more than 200 locations in the Netherlands, while ToyChamp has 41 outlets in both Belgium and the Netherlands and 48 storefronts under the DreamLand brand

The acquisition was approved by the Dutch regulator, the Authority for Consumers and Markets, in a decision published at the end of November. Those opposed to the acquisition can still send their opinion to the District Court of Rotterdam by December 19, when the deal is due to be finalized.

However, according to MRG, the dividend from this sale will not be sufficient to cover its debts. The group also does not expect any other significant income in the short term. So it has opted for bankruptcy.

MRG’s bankruptcy has no consequences for the handling of Blokker’s bankruptcy. Its healthy subsidiaries MRG Logistics and Miniso should continue to operate as usual. MRG Logistics is a logistics operator that delivers goods to physical retailers, and directly to consumers. MRG Logistics counts Albert Heijn parent Ahold Delhaize and medical brand Medisana among its clients

According to BNR, the yet-to-be-appointed bankruptcy administrators will want to obtain as much money as possible for MRG’s creditors, which will likely involve selling off its healthy parts.

The bankrupt electronics chain BCC also fell under MRG. As did Big Bazar, but MRG sold it before the discount retailer went bust.