Dutch Department Store Chain V&D Granted Payment Suspensionby and
Sun Capital Partners Inc.’s V&D Group said it won court permission to suspend payments to creditors after the Dutch department-store owner withdrew its support for further financing in the wake of a sales decline.
The chain, which has more than 60 stores in the Netherlands and employs 10,000 people, suffered “unexpected circumstances” in the past few months, including warmer-than-expected weather in November and December, V&D said in a statement on its website. An Amsterdam court announced the decision earlier Wednesday.
“This is an enormous disappointment,” Chief Executive Officer John van der Ent said in the statement. U.S. private equity firm Sun purchased the company in 2010 for an undisclosed sum. A representative for Sun declined to comment on the filing. V&D is going to explore all options for the future with court-appointed administrators, Van der Ent said.
The administration filing is the second for a Dutch retail group this week. Macintosh Retail Group won creditor protection Tuesday after exploring strategic options. All of V&D’s shops and its La Place restaurants will remain open for the time being, the company said.