Businessman Michal Mička has proposed insolvency for his eighth company. The company C2H, which, according to the insolvency register, owes approximately 94 million crowns, fell into an unmanageable debt trap. The situation is so serious financially that the debtor proposes a direct bankruptcy because he considers the reorganization to be impracticable.
C2H provided investment and acquisition advice for the entire C2H Equity clothing group. The largest of the twenty registered creditors is the debtor’s mother herself, also the bankrupt C2H Equity, which covers the Kara and Pietro Filipi clothing chains.
Mička did not want to comment on the financial difficulties. However, according to analysts, bankruptcy usually means significantly less satisfaction for creditors than in the case of reorganization.
The entrepreneur has already sent seven companies into insolvency in previous months. In addition to C2H Equity, Pietro Filipi and Kara, for example, C2H Retail Holding, has sold bonds worth hundreds of millions of crowns to investors in recent years. These used to be used to finance the fashion brands of the Miček group, the bankrupt Pietro Filipi and Kara companies.
C2H Retail Holding issued six bond issues in the planned volume of up to seven hundred million crowns with maturities between 2022 and 2026. It attracted investors to relatively high yields over seven percent. Economists drew attention to the riskiness of these papers as early as 2019 when the company sold most of its bonds.
All the bankrupt companies from the holding company attribute their fall to anti-pandemic measures, which made it impossible to operate stone shops for several months. Mička already owes over a billion crowns for all the companies together, wrote the Reporter magazine.
Two weeks ago, Prague lawyer Jan Langmeier, who represents some of the creditors of the bankrupt C2H group, filed a criminal complaint against Mička. According to Langmeier, he committed fraud in that his plan to revive the troubled clothing brands Kara and Pietro Filipi was unrealistic from the beginning.