The judge does not give Big Bazar additional time to conclude agreements with creditors. The court in Leeuwarden, Netherlands, refused for the second time to impose a cooling-off period. This threatens another bankruptcy of the chain of deals.
According to the judge, the necessary financial support has not been received for Big Bazar to meet existing obligations. The opposing counsel informed the court that the requested funds are not yet available, although negotiations are said to be at an advanced stage.
The judge’s ruling does not give the company time to hire a restructuring expert, which would have been a last-ditch rescue attempt. Bankruptcy filings, which were put on hold in recent days, must now be processed again.
Big Bazar said on Friday that it expects to inject significant capital by selling the Belgian branch in order to raise funds to repay creditors. The chain said it was close to a deal that would generate €3.5 million. The judge has doubts whether Big Bazar will actually succeed. Therefore, the company is not given additional time to solve problems.
During a previous hearing, there were already doubts about whether the chain would receive the required amount on time. This is mainly because the money has to come from abroad. Many creditors no longer believe that Big Bazar will still be able to put its affairs in order financially. The chain has already fallen behind on several lease payments and will no longer pay suppliers.
Response to action
The series was designed by Blokker’s parent company in response to the successful debit operation. Big Bazar sold leftover items. Half the range was cheaper than 5 euros.
Big Bazar has accumulated losses in recent years, and is also said to be in debt amounting to tens of millions of euros. “They always promise a lot, but nothing much comes of it. There was supposed to be a payment arrangement, but I never saw it,” says one creditor.
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