Mirage Retail Group and Dutch Retail Groep have reached agreement on the sale of Blokker Stores in Belgium by the former to the latter.
Under the agreement, none of Blokker’s outlets will be closed, but the group will undergo a name change.
“By virtue of this agreement, the Blokker outlets in Belgium and the Grand Duchy of Luxembourg will be transformed in the next few months, adopting a discount formula and the name ‘Mega World’,” Mirage Retail Group revealed in a press release. “Following the acquisition of its 123 stores, the Blokker name will disappear completely from the landscape in Belgium. The Blokker (Belgium) works’ council has been informed and consulted.”
For the past five years, the turnover and performance results of Blokker Belgium had come under pressure in a “particularly difficult” market, the Mirage Retail Group explained, adding that “despite multiple measures and initiatives,” it did not manage to change the trend.
“Due to the losses incurred, it was not conceivable to continue along this path without taking drastic measures,” Mirage explained. “The acquisition of our stores by Dutch Retail Groep and their conversion to the Mega World discount brand will provide multiple continuity benefits both for the stores and their employees.”
In 2017, Blokker closed 63 stores in Belgium, resulting in the loss of 230 jobs.
Dutch Retail Groep owner-director Dirk Bron said he was “very happy” at the acquisition of the “excellent network of Blokker stores in Belgium and Luxembourg, which are managed by top-quality teams.”
“From tomorrow, we will work to convert these stores to the new Mega World discount brand,” said Bron, who added that he was “convinced that the discount formula has a great future in Belgium.”
“No store will close its doors and I’m sure this new formula will enable us to ensure the development and profitability of this company,” he concluded.