Unlimited Footwear Group BV in suspension of payment
The Dutch footwear company Unlimited Footwear Group B.V., which operates under the name The Heritage Footwear Company, has obtained a moratorium on payments according to the public insolvency register.
If a company is no longer able to pay its invoices, it can apply to the court for a moratorium. This means that the fashion company may suspend or, more precisely, postpone the payment of debts that are due. During the suspension of payments, the fashion company must try to solve its financial problems. This can be done, for example, through negotiations with creditors or through restructuring.
When ordering the suspension of payments, the court appoints an administrator. Once appointed, this administrator monitors the company's assets. If, for example, the company wishes to continue concluding contracts during the suspension of payments, it requires the administrator's authorisation to do so.
If the company does not succeed in solving its financial problems, bankruptcy is inevitable. In many cases, the suspension of payments ultimately leads to insolvency. In other words, suspension of payments is often the precursor to insolvency.
On 14 May, creditors will decide whether to approve a plan submitted by Unlimited Footwear Group. It is worth noting that its subsidiaries, including the footwear brands Nubikk and Rehab, are excluded from the suspension of payments.
OR CONTINUE WITH