(update) French fashion chain Promod is reducing the size of its foreign activities. The German branch has started an insolvency procedure, the Belgian stores are also being looked into. However, only one Belgian store is closing.
The chain has been hit hard by the coronavirus measures and has started working on a new strategic plan, meaning it will "focus on the most profitable areas" from now on. The priority will be its home market France, while the number of foreign stores will be reduced.
Germany is the first country where strict measures are applied: two months ago already, a court in Cologne started an insolvency procedure for the German branch - which has 32?stores and 222?employees. An earlier cost reduction scheme saw 180?foreign stores close, leaving 580?stores in 25?countries open.
A Belgian store (in Leuven) has also closed, leaving just nine stores in the country. However, the company's press representative ensures there are no other?store closures planned, claiming?Belgium remains a priority market for Promod. The brand did not renew the lease of the Leuven store when it expired, but "the non-renewal of a lease is part of the general management of a store network".