HEMA is saved: creditors come to an agreement to decrease company’s debt

After an uncertain few days, HEMA is saved. The company was heavily indebted and about to file for bankruptcy as a result of the coronavirus crisis.

The company’s creditors have come to an agreement on what to do about the company’s debt. The debt was mostly acquired in 2007, when investor Lion Capital bought the chain and actually had HEMA pay for it itself. Since then the company has been paying off the debt, but because of the coronavirus crisis, it no longer had the cash flow to do so.

The solution the creditors have found is to convert much of the corporate debt into shares. This will decrease the total debt from €750 million to €300 million, allowing HEMA to keep operating, and even to invest in its future. The group of shareholders will acquire all the shares of the company, and become full owners. They intend to eventually sell the company again to the highest bidder.

This deal comes at the expense of the current shareholder of the company, billionaire Marcel Boekhorn, who will lose most of his control over the company. His attempt to negotiate a deal with the company’s creditor’s failed.

Are you glad HEMA will still be on the Dutch high street? Let us know in the comments below.

Feature Image: Donald_Trung/Wikimedia Commons

Ailish Lalor
Ailish Lalor
Ailish was born in Sydney, Australia, but grew up by a forest in south-east Ireland, which she has attempted to replace with a living room filled with plants in The Hague. Besides catering to her army of pannenkoekenplantjes, Ailish spends her days convincing her friends that all food is better slightly burnt, plotting ways to hang out with dogs and cats, and of course, writing for DutchReview.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related posts

Latest posts

7 natural campsites in the Netherlands to enjoy this spring and summer

Stuck in a cycle of concrete roads, car parks, traffic jams, cancelled trains, and office walls? When your next vacation seems too far away,...

Out with a ban: VVD support brings Dutch anti-firework bill closer to reality than ever 

After resisting for years, the VVD (People’s Party for Freedom and Democracy) now backs a fireworks ban in the Netherlands. This brings the bill...

Registration in the Netherlands: the complete guide for 2025

Fresh off the plane? Welcome! 🇳🇱 If you’re feeling a bit lost and aren’t sure what you're meant to do next, don’t stress —...

It's happening

Upcoming events