Over 1,300 jobs at risk as electronics chain BCC requests payment deferrals
Electronics chain BCC is on the verge of collapse. Owner Mirage Retail has filed for deferment of payments at the Amsterdam court. Deferment of payment is often the harbinger of bankruptcy. The chain employs about 1,300 people at its 56 branches.
BCC’s revenue model no longer works, Mirage Retail owner Michiel Witteveen told the Financieele Dagblad. “Rent, wages, and energy have all become more expensive. To make money, you simply have to make higher margins, but major suppliers refuse to move in that direction,” he said. The chain is also struggling under consumers spending less. During the pandemic, people bought a lot more electronics and household appliances. Now, whatever money they have left after inflation is going towards services like holidays and restaurants.
BCC informed its employees about the financial problems on Thursday morning. The latest available figures, for the financial year ending in January 2022, showed BCC suffering a net loss of 21 million euros on a turnover of 424.8 million euros.
Mirage Retail also owns Intertoys and Blokker, among others. It put Intertoys up for sale late in August. At the time, Witteveen told FD that he also intended to sell Blokker and BCC because he considered it best for the chains’ future. “When the time is right,” these companies will also go up for sale, he said.
Witteveen already sold Big Bazar to BB Retail in 2021. The bargain chain is currently also on the verge of bankruptcy, struggling with rent arrears with multiple landlords.
