The owner of the two cosmetic chains Vita and Loco has filed for bankruptcy, and a total of 1,300 employees have been affected. They are now working to find a buyer.
The chains have struggled with weaker growth and declining profitability. Despite increased focus on e-commerce and digitalisation, repositioning of Vita and the establishment of the low-price concept Loco, they have not managed to reverse the trend.
“The retail and cosmetics industry has been affected by changing customer needs and increased competition from e-commerce and low-cost chains,” Cosmetic Group CEO Kristina Johansson writes in a press release.
The Board of Directors has concluded that the conditions for further operation are no longer present and has filed for a bankruptcy petition to the Oslo District Court.
The decision affects the chains Vita and Loco with 300 employees at the head office in Oslo and the logistics business in Mjøndalen. In addition, the 23 self-owned Loco stores and 207 franchise-owned Vita stores come with a total of 1,000 employees.
© NTB Scanpix / #Norway Today