EMCC European Monitoring Centre on Change

Zoot

Company/Organisation:
Zoot

Geographic Location

Country: Czechia
Region: Hlavni mesto Praha; Praha
Location of affected unit(s): Prague

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.91 - Retail sale via mail order houses or via Internet
Number Employed: 500

Employment Effects

Announcement Date: 06-03-2019
Planned Job Reductions min: 150
Type of Restructuring: Internal restructuring
Employment Effect Start: 31-03-2019
Direct Dismissals: 150

Additional Information

Zoot, the Czech Internet shop of clothing and accessories, based in Prague, has recently dismissed 150 out of the existing 500 employees due to its poor financial situation. Since the end of January 2019, when the firm applied for moratorium, its management has closed 12 out of a total 28 dispensing shops where customes can try and pick up the ordered goods. Zoot decreased the planned marketing costs to one third. This occured so as the company to be protected by the total debt, which amounts to CZK 518 million (€20,2 million). Other recovery steps should follow soon, such as opening traditional stone shops and supporting more its own brands.

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