Affected by the COVID-19 epidemic and epidemic prevention, many companies in the retail industry that have been threatened by online stores have been unable to withstand this wave of epidemic and have filed for bankruptcy or reorganization.
In this wave of bankruptcies, the retail industry has been hardest hit by the clothing chain industry. The JOY brand, a subsidiary of the well-known brand MQ Group, filed for bankruptcy for 40 clothing stores in mid-March. The Lund Fashion Group, owned by the old brands Flash and Dea Axelssons, which has 95 stores in Sweden and 3 stores in Denmark, filed for bankruptcy at the end of March and is now promoting clearance sales, affecting about 500 employees.
Eztrad, which owns four clothing stores in Sweden, filed for bankruptcy because the epidemic affected 70% of its turnover. The EmilMode family business, which has a history of more than 100 years and owns 10 Fanny clothing stores in Sweden, also filed for bankruptcy at the end of April. Anrika men’s clothing company, which operates two Holmes Herr and online stores in Gothenburg, the second largest city, applied for reorganization.
Other retail businesses that are still operating hope to rely on the government’s bailout programs to survive this wave of epidemic.
