Fashion Brand C&A Leaving Serbia?

The fashion store chain C&A is preparing to leave Serbia. Blic Biznis writes that “several sources have confirmed that the management, at a meeting this Monday, notified around 130 workers that it’s a matter of days when the company might close down”.

Blic Biznis reports that what’s allegedly behind this are the machinations of this store chain, which arrived to Serbia in 2012, and that the procedure was initiated by the Customs Administration.

BBC News in Serbia reports the findings that C&A Moda RS doo filed the proposition for launching the bankruptcy proceedings on July 5, 2022.

The Serbian Judiciary Portal, a section of the website of the Ministry of Justice, shows that the proposition was filed on Tuesday, July 5, reports B92.

At C&A, they say that they have become “the target of an organized customs fraud”.

– The company C&A Srbija has no other choice than to declare insolvency today. The perpetrators have systematically committed more than 300 acts of fraud, violating the customs regulations of the Republic of Serbia – the press release says.

They add that this decision affects 14 stores and around 135 employees in Serbia.

The press release further says that C&A Srbija is the target of an organized customs fraud perpetrated by one of its business partners, as well as other perpetrators, who are still unknown. The German textile giant explains that said perpetrators systematically carried out more than 300 acts of import fraud in the 2014-2021 period, misusing the logo of C&A, the advantages of the customs status and the representation authorization of the customs representative of C&A in Serbia.

The criminal act was discovered in October 2021, when C&A was first notified about the import fraud by the customs organs of the Republic of Serbia.

– After several months of investigation and despite the proof which backs the position that C&A Srbija should not shoulder the consequences of this criminal act, the customs organs of the Republic of Serbia took the position that the company C&A Srbija is responsible for paying the customs fees on the goods declared within the fraud import. After a thorough analysis of the situation, the management team of C&A Srbija concluded that it could no longer responsibly handle the risks of the further disputing of the legal position taken by the organs of the Republic of Serbia. Considering the financial scope of the requests directed against the company C&A Srbija, the management team was forced to declare insolvency today – the company says.

Further procedures, they conclude, will be processed by the appointed bankruptcy supervisor, B92 reports.

– This development in no way concerns the other markets that C&A operates in – says the company, which came to Serbia in 2012.

C&A operates in 14 outlets throughout Serbia, mostly in shopping centers.

C&A MODA BEOGRAD

C A

C and A

Customs Administration

Commercial Court Belgrade

fashion store chain

leaving

bankruptcy proceedings

machinations