Dutch icon: Pedestrians outside a Hema BV store in Amsterdam, Netherlands. Hema remains beloved today by Dutch consumers for its colorful birthday cakes, smoked sausages and own-design homeware. But in recent years a massive debt pile, high rental costs and a decline in footfall have eaten away at its bottom line. — Bloomberg
AMSTERDAM: Seeking to explain the appeal of Dutch retailer Hema’s brand to consumers outside the Netherlands, CEO Tjeerd Jegen compares it to a mix of Marks and Spencer Group Plc and John Lewis, “on steroids.”
But just as the British stores have faced their own financial difficulties of late, so Hema has had its own problems, starting with an oversized debt pile. And this week’s restructuring plan -- which will cut its liabilities from 750 million euros (US$842mil) to 300 million - still raises questions over its future ownership.
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