Entrepreneur Jan Mika proposed the bankruptcy of his next eighth company. C2H Support, which owes about 94 million kroner according to an insolvency registry, has fallen into an unmanageable debt trap. The situation is so serious from a financial point of view that the debtor proposes direct bankruptcy because it considers reorganization impractical.
C2H Support provided investment and acquisition advice for the entire C2H Equity clothing line. The largest of the 20 creditors on record is the debtor’s mother herself, as well as the bankrupt C2H Equity, which covers clothing chains Kara and Pietro Filipi.
Mi didka did not want to comment on the financial difficulties. However, according to analysts, bankruptcy usually means much less satisfaction of creditors than in the case of reorganization. “Given that the company is proposing outright bankruptcy, there is little chance that creditors will be more satisfied with their receivables,” says J&T economist, Milan Vanichek.
The entrepreneur has already sent seven companies into bankruptcy in the previous months. In addition to C2H Equity, Pietro Filipi and Kara, for example, C2H Retail Holding, which has sold bonds worth hundreds of millions of crowns to investors in recent years. It was used to finance the fashion brands of the Mi ieek group, the bankrupt companies Pietro Filipi and Kara.
C2H Retail Holding has issued six bond issues with a planned size of up to seven hundred million kroner with maturities between 2022 and 2026. They have attracted investors to relatively high returns of over seven percent. Economists have drawn attention to the seriousness of these securities since 2019, when the company sold most of its bonds.
All the bankrupt companies of the holding company attribute their downfall to anti-epidemic measures that made it impossible to operate stone shops for several months. The Reporter writes that Miuka already owes more than a billion kroner to all companies together.
Two weeks ago, Prague lawyer Jan Langmer, who represents some of the creditors of the bankrupt group C2H, filed a criminal complaint against Mička. According to Langmer, he committed fraud in that his plan to revive problematic clothing brands Kara and Pietro Filipi was unrealistic from the start.
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