Duror Fashion Group, the parent company of fashion brands Terre Bleue, Gigue, and Zilton, has made the decision to close its accounts. The announcement was made in a press release on Saturday, citing financial difficulties. Unfortunately, this means that over 150 employees will lose their jobs due to the bankruptcy, and 29 stores will be closed temporarily.
The group is well-known for its various fashion brands, including Terre Bleue, Gigue, and Zilton. Terre Bleue is a popular high street brand, Gigue was founded by Jo Wyckmans and caters to preppy styles, and Zilton is a men’s fashion label. The family business, which has been in operation since 1938 and led by Peter Perquy for the past five years, struggled to manage its debt burden.
Several factors contributed to Duror’s financial challenges, including the impact of the coronavirus pandemic, the war in Ukraine, rising energy and raw material prices, inflation, and unpredictable weather conditions. The competitive nature of the fashion market, with the rise of fast fashion, foreign webshops, and second-hand sales platforms like Vinted, also played a role in the group’s downfall.
The group’s brands were also sold in multi-brand boutiques, which faced increasing pressure from larger retailers. The decline in independent fashion retailers, which accounted for a significant portion of Duror Fashion Group’s turnover, added to the difficulty. Brands positioned in the mid-range segment were particularly vulnerable to market factors, as consumers shifted preferences towards luxury and fast fashion.
Despite efforts to reduce costs and increase turnover in recent years, Duror Fashion Group could not secure an agreement with its financiers to extend loans. The loans obtained during the COVID-19 crisis were set to expire on June 30, 2024, creating a pressing financial deadline for the company. Ultimately, the inability to reach a resolution with financiers led to the decision to close accounts.