Friday, May 8, 2015

What went wrong with V & D – NU.nl

This is the new strategy that CEO John van der Ent V & D will help out of trouble, appears Friday at the presentation of the new strategy for the ailing retailer

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What went wrong

Then four years ago, department store V & amp;! D was adopted, the purpose of the new owner, the American Sun? Capital Partners, to double the number of stores.

The chain then made all loss, but the investment company, which operates in the Netherlands through Sun European, wanted to work on the environment in the shops and the friendliness of the staff to improve the results.

The plans did not materialize. Four years ago there were 62 V & D facilities, now there are 63. The chain has also never managed to get out of the red. The loss doubled in 2013 from 19 million euros to 42 million euros. 2014 was a loss of 49 million euros

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Beginning 2015 the flame hit the pan.

He managed the board of the department store not to compete with a growing online market and discount chains such as Action, the group decides to increase the pressure to reduce costs. Much more about what exactly the problems are at V & D are not disclosed.

Where V & was D first faced with protesting landlords and employees running the company’s problems after a deal with landlords now mainly to an agreement with the staff

Protests against. proposed salary sacrifice

The department store originally wanted employees 5.8 percent salary drop off and further had another fifty jobs will be deleted.

The unions FNV and CNV did not agree with this plan and went to court against the unilateral implementation of a salary reduction. Talks yielded nothing on, according to the unions because V & D continued to cling to the salary sacrifice

The judge sided with the unions and prohibited unilateral measures for trade unionists.. For employees who are not union members are allowed V & D has to make a wage reduction, but the supermarket chain decided to keep the salary still stable. However, the company will appeal

After the defeat in the court V &. D contacted. Unions reported that confidence had to be restored first, but after a “constructive” dialogue early March, opening the way for real negotiations seem.



was requested a lower rent

landlords asked a rent-free period of four months and a 40 percent lower rent. Is Sun will be investing themselves, as long as other stakeholders also contribute

After the threat of a legal judgment did the landlords led by V &. D and IEF Capital, owner of twelve V & D buildings to strike a chord.

The necessary rental savings would be realized 24 million, although no exact details were announced there. For V &. D would also plan for the long term provide the necessary rent expense reduction

Judicial decision prevented

The agreement was to prevent decisions of judges. There was already a first meeting was at the court of Rotterdam in a lawsuit from IEF Capital for V & D.

However, no agreement was reached with the landlord Metropop. Metro Prop is the owner of three R & amp; D buildings in Den Bosch, Heerlen and Sittard.

The key point for V & D is now an agreement with the employees. Without a reduction in labor costs can also come to the agreement with the landlords at risk.

By: NU.nl

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