C&A Serbia being the target of organized customs fraud

Düsseldorf, 05.07.2022. After having been the target of organized customs fraud committed by unknown perpetrators, C&A Serbia had no choice but to file for insolvency today. The
perpetrators systematically performed over 300 fraudulent acts violating Serbian customs regulations. Affected by this decision are 14 stores and about 135 employees in Serbia. This
situation is very specific and applies to Serbia only. This development does not concern in any way any other C&A markets.

C&A Serbia has been the target of organised customs fraud committed by one of its business partners and other perpetrators who are still unknown. The said perpetrators have performed over 300 fraudulent imports systematically by abusing the C&A logo, beneficial customs status and the representation powers of the C&A customs representative in Serbia. The crime was discovered in October 2021 when C&A was first informed of these fraudulent imports by the Serbian Customs Authority.

After months of investigation and despite evidence supporting the position that C&A Serbia should not bear the consequences of that crime, the Serbian Customs Authority took the position that C&A Serbia is liable to pay customs duties for the goods declared within the fraudulent imports.

After a thorough analysis of the situation, C&A Serbia’s Management Team has come to the conclusion that the risks involved in further contesting the legal position upheld by the Serbian authorities cannot be borne responsibly. Given the financial scope of demands against C&A Serbia, the Management Team was forced to file for insolvency today. Future proceedings will be handled by an appointed insolvency receiver.

About C&A

With over 1,300 stores in 18 European countries and more than 25,000 employees, C&A is one of Europe’s leading fashion retailers. Every day, C&A welcomes about two million visitors to its stores in Europe and offers quality fashion at affordable prices for the whole family. For further information, please visit our website: www.c-a.com

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C&A Europe I Wanheimer Straße 70 I 40468 Düsseldorf
press@canda.com