C&A Serbia has to file for bankruptcy due to customs fraud.
The Serbian branch of the clothing retailer C&A Europe had become the target of “organized customs fraud by unknown perpetrators”, the company announced on Tuesday. The perpetrators are said to have committed more than 300 fraudulent acts in violation of Serbian customs regulations.
Therefore, C&A Serbia has “no other choice” than to file for bankruptcy. 14 branches and around 135 employees in Serbia are affected by this measure. According to the company, other C&A markets will not be affected.
Customs fraud: business partner is involved
In addition to the still unknown perpetrators, a business partner of C&A Serbia was also involved in the fraud, according to Düsseldorf. They abused the C&A logo, the customs privileges and the powers of representation of the C&A customs representative in Serbia to carry out over 300 fraudulent imports.
The crimes were first uncovered last October when the clothing company was informed by Serbian customs. The authority believes that C&A Serbia has to pay customs duties for the imports made by the scammers.
Although there is said to be evidence “that indicated that C&A Serbia should not suffer the consequences of this crime”, the management of C&A Serbia decided that further challenges in this case could not be held responsible. In addition, the financial claims arising from the customs duties are too high, so the company has decided to file for bankruptcy. Further proceedings are continued by an appointed insolvency administrator.
C&A has more than 1,300 branches in 18 European countries. The corporate headquarters of C&A Europe is in Düsseldorf. The company opened its first branch in Serbia in 2012 in Belgrade.