The “department store with a mission” Tomo will not be resumed in its current form, but several interested parties have already contacted the insolvency administrator for the concept and the brand name, according to the first insolvency report.
The administrator does not consider the current form of the business, a shop in the Mall of the Netherlands in Leidschendam near The Hague, to be practicable. “If only because the rented space is far too large and therefore too expensive and a large part of the inventory has been taken back.” Whether the concept of the department store, which is intended to promote sustainability and the circular economy in the fashion industry, will ultimately be adopted is up to not clear at this point.
The insolvency report shows that the acute reason for the insolvency is related to the withdrawal of investors and financiers. Tomo’s concept was funded by third parties, including banks Triodos and Rabobank. The shareholders and investors failed to meet their obligations. As Tomo’s sales fell and debt piled up, a rescue plan was put in place, but again, the banks and some shareholders refused to provide funding, the report said.
This translated and edited post previously appeared on FashionUnited.nl.