JC’s CEO Thomas Behring resigned the other day.
Yesterday, April 6, the company applied for reconstruction at the Stockholm District Court.
JC, today with 54 wholly owned and eight franchise stores in Sweden, has had problems for a longer time. Last fall, 21 franchise stores left the chain and started a new chain, Jeansbolaget.
The reconstruction application indicates that the company now has liquidity shortage, writes the union website Handelsnytt.se.
To the district court, JC writes that the change of ownership in 2013, when Chinese Denim Island Group bought the company from RNB, led to a process of change that has taken more time and more resources than planned. The crisis has become urgent with the traditionally weak months at the beginning of the year.
A few days ago it became official that CEO Thomas Behring resigns and is replaced by Denim Island’s President Gordon Wu.
The company believes, however, that there are conditions in the long term. At a reconstruction one attempts to liquidate the debts so that operations can continue. If the reconstruction, however is failing, bankruptcy may be considered.