Published: July 25 2023
Salamander, the shoe chain, is exiting Hungary amidst economic challenges. The chain has announced the closure of its stores in Hungary and is currently having a final sale with discounted prices.
Reason for Exiting Hungary
The decision to leave Hungary stems from the owner's choice to discontinue retail operations in the country. The company's turnover has stagnated in recent years, and the effects of the COVID-19 pandemic caused a significant drop in revenue in 2020-2021.
Financial Performance and Insolvency
Although turnover returned to pre-pandemic levels, the company still faced financial losses. Salamander closed 2020 with a loss of €181 million, which is a four-fold deterioration compared to the previous year. The German parent company filed for bankruptcy protection at the end of last year.
Expansion and Previous Challenges
Salamander's expansion into former Soviet bloc countries did not yield positive results, leading to financial losses in the 1990s. The company also had a shoe factory in Hungary, which closed about 20 years ago.
Historical Background of Salamander in Hungary
Salamander had already established a presence in Hungary in the late 1920s. However, its shops were nationalized after World War II, and the reintroduction of its products occurred in 1989. The company acquired the Tisza shoe factory in Martfű and Sabona shoe cooperative in Bonyhád in the late 1990s.
Overall, Salamander's departure from Hungary is due to economic challenges and the decision to discontinue retail operations.
Questions & Answers
Why is Salamander leaving Hungary? Salamander has decided not to continue retail operations in Hungary due to economic challenges. The company's turnover has stagnated in recent years and was further impacted by the effects of the COVID-19 pandemic. The parent company also faced financial difficulties and filed for bankruptcy protection.
When will Salamander stores in Hungary close for good? Salamander has announced that their stores in Hungary will soon close permanently. The final sale is currently underway, and customers can purchase products at discounted prices.
How many people are employed by Salamander in Hungary? Salamander employs 83 people in Hungary.
Did Salamander also pull out of Austria? Yes, Salamander has also pulled out of Austria after 54 years. The company closed its remaining 19 stores in Austria and laid off 200 employees there.
When did Salamander open a shoe factory in Hungary? Salamander opened a shoe factory in Hungary in 1998. However, the factory closed about 20 years ago.
When were Salamander's shops in Hungary nationalized? Salamander was already present on the Hungarian market in the late 1920s, but its shops were nationalized after the Second World War. The company reintroduced its products in Hungary in 1989.
What is the business model of Salamander in Hungary? Salamander has the business model of selling shoes only in their own specialist shops in Hungary. They revived the Tisza brand after 2000.