Orsay ends in the Czech Republic  MODA.CZ

Orsay ends in the Czech Republic MODA.CZ

With reference to a well-informed source, Forbes magazine announced the departure of the German company Orsay from the Czech market. According to available information, other clothing companies are also preparing to leave.

Orsay ends in the Czech Republic  MODA.CZ

illustration photo Orsay

According to a source in Forbes magazine, Orsay is currently selling its stores. If this fails, the company will go into insolvency on the Czech market. He will allegedly end his activity not only in the Czech Republic, but also in Slovakia. It has more than 90 stores in both countries. However, Orsay’s spokeswoman did not confirm or deny the information about the termination of the business.

Withdrawal from the market may seem logical, as the parent company in Germany published its financial problems in the post-period period and the Austrian daughter has been insolvent since the end of April. In Germany, the company has already closed more than 80 branches and laid off more than 200 employees. This led to large-scale strikes and unions had to intervene. The reason was not only the post-Pidid financial loss, but also the pressure for rising rents in Germany.

photo: Orsay Wien

Last year, the Czech subsidiary was also at a loss. This was also due to economic shocks caused by the general closure of stores lasting several months. In addition, it is possible that sales will move to the e-commerce space, where they will have to deal with a lot of competition. The economic crisis in the fashion and clothing sector has not only affected Orsay. The insolvency includes Pietro Filipi, Timeout, Only, Lee Cooper and Kara. Brands such as Promod or Next have also started to be withdrawn from the Czech Republic. A change in the business model is certainly in place.


Source: Moda

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