Iconic Dutch Retailer Hema Files for Chapter 15 Bankruptcy

Dutch retailer Hema filed for Chapter 15 court protection in the U.S. in the latest step of a debt restructuring as the popular local firm prepares for its sale, Bloomberg News reported. Chapter 15 shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. The filing came late Wednesday, the same day that Hema’s restructuring plan received support from the vast majority of its senior-ranking bondholders in a U.K. court process. For Hema, a department-store chain beloved by Dutch consumers for its colorful birthday cakes, smoked sausages and homeware, the move is part of a plan to reduce its debt and manage the impact of the coronavirus pandemic. A group of creditors effectively took over the business in June and are looking to sell it to a new owner, with final binding bids due by Sept. 14, according to the U.S. filing. Read more