A large food retailer went bankrupt in the Czech Republic. It ends wildly, chopping up giant debts

We have not remembered anything like this in the Czech Republic for a long time. It ends with a large established retail chain that had a large group of customers. It is a network of Iceland supermarkets based in the United Kingdom. In the Czech Republic, however, it has expanded massively in recent years, gradually opening 11 branches and trying to convince customers that frozen food can be of high quality.

It was gradually closing

But now it is clear that this will not be a success story. It was clear a few weeks ago that something was going on. Iceland closed several of its stores without explanation, stopped adding goods to others, and customers also lost the opportunity to shop in the popular e-shop. At that time, the company did not want to officially admit that it was ending. Rather, she spoke of some form of restructuring.

If this was considered at all, it was obviously impossible, because Iceland is now ending officially, and not in a very nice way. The parent company ICL Czech filed an insolvency petition against itself. This means that she does not have to cover her obligations and her British mother does not.

Foto: Shutterstock

Reasons for failure

The company cut debts in the total amount of 38.4 million crowns. He has the most at the Czech Social Security Administration and the Prague Tax Office. Apparently, she has not recently paid social insurance or taxes for her employees. This is not exactly proof of a sample business. In the case of such an established company, which also has a big name abroad, a more cultured departure could be expected.

The company itself cites the pandemic and then the departure of Great Britain from the European Union as the reasons for its failure, which made logistics operations and deliveries of goods significantly more difficult. But Marks and Spencer, who also sells groceries, has been able to deal with this. So there is perhaps another reason, namely that Iceland’s products have never won the hearts of Czech customers.

Foto: Shutterstock