Homefashion Group, the Dutch parent company of Leen Bakker and Kwantum, denies that the group plans to close dozens of shops. This is the company's response to national reports suggesting that 35 branches of Leen Bakker would disappear and that some shop premises would now be offered for rent.
A spokesperson for Homefashion Group told Vastgoedmarkt.nl that "the suggestion that we want to close a significant number of shops is not an issue at the moment." The group is, however, according to the spokesperson, exploring various strategic options to support the further development of both formulas.
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Financial results
The preliminary financial statements for 2023 show that Homefashion Group reported a profit of almost €20 million, largely due to a one-off tax windfall. Without that gain, the operating result would have been substantially negative. The figures have not yet been audited and results for 2024 are still missing.
Belgian branch for sale
A takeover candidate for the 44 Leen Bakker shops is being sought in Belgium. The Antwerp court agreed earlier this year to a court-supervised transfer procedure, which means Homefashion Group should find a buyer within a few months.
According to Dirk Mulder, sector specialist Trade & Retail at ING, the restructuring of Homefashion Group is part of a broader trend within the home furnishings sector. He told Vastgoedmarkt.nl that the corona period provided a peak in housing-related spending, but that "that phase is now over." Higher costs and declining purchasing power are putting pressure on margins, while many retailers are struggling with overstocks.
Mulder sees smaller interior shops in particular struggling with changing consumer behaviour. "Consumers want experience, inspiration and choice while shopping - something large shops can often offer better than smaller shops," says the ING analyst.
