2023-09-22 07:32:58
Colruyt Group and the Match and Profi subsidiaries of the Louis Delhaize group have concluded an agreement for the former to take over 57 Match and Smatch stores in Belgium, or around two thirds of the points of sale. However, no candidate buyer has shown interest in taking over the 27 remaining stores and logistics services. “In the absence of an alternative solution, management announced this morning at an extraordinary works council its intention to resort to a collective dismissal procedure (…) This intention could affect the employment of a maximum of 690 people,” indicate the Match and Smatch companies in a press release on Friday.
Already in 2019, these brands had faced “major economic difficulties” and had to resort to a first social plan which led to the closure of 15 stores, they recall. After an improvement during the pandemic, the return to normal resulted in a new negative net result.
“Faced with this situation and in order to stem recurring losses, several action plans and projects have been put in place but inflation, the increase in energy prices and the indexation of salaries have not allowed companies to achieve a return to financial balance in 2022 and 2023,” add the two brands. Match and Smatch note the failure of previous recovery plans and indicate that they no longer have enough concrete prospects to finance new ones.
“In this context, management undertook an in-depth analysis of its activities and concluded that the takeover of Match supermarkets and Smatch convenience stores by a major distribution player in Belgium would be the best option to ensure their development,” they explain.
It is within this framework that 57 stores (50 integrated and 7 franchised) are sold to Colruyt Group.
For the remaining 27 stores as well as for the support and logistics services, no candidate buyer has shown interest in a takeover. Management therefore announced this Friday morning at an extraordinary works council its intention to resort to a collective dismissal procedure which could affect 690 jobs.
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