Indiska has submitted an application for reconstruction.
A weak autumn and Christmas sales have worsened the situation of the pressed fashion and interior design chain.
“In order to realize Indiska’s potential, we need to jointly implement the change plan developed and it is only possible during a reconstruction,” says newly appointed CEO David Rönnberg.
Several unprofitable stores will close.
Recently founder-daughter Sophie Gunolf stepped of the CEO-position. And new CEO David Rönnberg begins with a dramatic decision.
The board of the Indiska Magasinet AB has today submitted an application for reorganization of the Swedish parent company to the Stockholm District Court.
“The situation for Indiska is serious, but David Rönnberg and the company’s management team has worked intensively during the past month and both the board and the owners are happy with the plan that is now the basis for the decision to apply for reconstruction. It is very unfortunate that some people have to leave now but it is a necessary step to ensure the company’s future,”says Patrik Tillman, chairman of the board.
Indian says that the recent years have been tough for the chain and the changes implemented so far have not been sufficient to reverse the negative trend. The warm weather and range deficiencies have contributed to weak sales in the autumn and the recently completed important Christmas sales were disappointing which contributed to today’s situation.
Facing the seasonally weak first four months of the year that now starts, Indiska therefore, without a formal reorganization process, lacks the liquidity reserve that is necessary.
The reconstruction phase will be led by David Rönnberg closely with the management team, the board and the administrator. Shops and e-commerce will be open as usual.
“I am convinced that Indiska has great potential, but we need to jointly implement the change plan developed and it is only possible during a reconstruction. Change plan involves among other things, to liquidate unprofitable stores, reviewing the assortment strategy, streamline and adjust its cost base while we need to increase sales both in our stores and through our E – commerce, ” says David Rönnberg.