Dutch footwear company Unlimited Footwear Group BV, which operates under the name The Heritage Footwear Company, has obtained a stay of payment, according to the public bankruptcy register.
If a company is no longer able to pay its bills, it can apply to the court for a stay of payment. This means that the fashion company is allowed to suspend, or rather postpone, the payment of due debts. During the suspension of payments, the fashion company must try to resolve its financial problems. This can happen, for example, through negotiations with creditors or through restructuring.
When ordering the suspension of payment, the court appoints an administrator. After his appointment, this person oversees the company’s assets. For example, if the company wants to continue to conclude contracts during the suspension of payments, it needs the authorization of the administrator to do so.
If the company fails to resolve its financial problems, bankruptcy is inevitable. In many cases, suspension of payments ultimately leads to bankruptcy. In other words: cessation of payments is often the precursor to insolvency.
The deferred payment has been in effect since February 16th.
On May 14, creditors will decide whether to approve a plan presented by Unlimited Footwear Group. It is worth noting that its subsidiaries, including footwear brands Nubikk and Rehab, are excluded from the suspension of payments.
At the time of publishing this article, the Unlimited Footwear Group website is still online, but the websites of all of the group’s brands, such as Bullboxer, Rehab, Nubikk, Gaastra, Braend and Supertrash, are currently inaccessible.
The reasons for the temporary suspension are not yet known. A spokesman for Unlimited Footwear Group has declined to comment. Trustee Alberts has not yet been able to speak to FashionUnited.
Suspension of payments for Unlimited Footwear Group BV
Unlimited Footwear Group designs, purchases and distributes footwear for men, women and children. The well-known company in the fashion industry has 13 brands in its portfolio, six of which are own brands. The Dutch footwear company also holds licenses for eight well-known brands, including Gap, G-Star and Lyle & Scott, and has Levi’s as a distribution brand in its portfolio.
Unlimited Footwear Group has all facilities in-house, from design, production and marketing to sales and distribution. “Thanks to an experienced design team with international reach, our shoes have a recognizable design signature with a distinctive eye for detail. We make sure that we include the latest fashion trends in our selection. Thanks to the exclusive production facilities, short delivery times are guaranteed. This mix of elements results in a value-for-money product across all segments and for all age groups,” the website says.
This article may be supplemented with additional information at a later date.
This translated article previously appeared on FashionUnited.nl