Former lingerie market leader on the brink of bankruptcy

Wpis dostępny jest także w języku: polski

The former market leader Ferax, Gatta’s chain owner, has been placed under sanitation proceedings aimed at restructuring the company.

With the decision of 14 January 2021, the court opened the sanctioning proceedings of Ferax, which owns the Gatta chain. The proceedings are aimed at restructuring the company, which will save it from bankruptcy.

COVID-19 not the only reason for the company’s difficult situation

However, a worse 2020 is not the only reason for this situation. The company has been generating revenue losses since 2018. In 2019, the company’s net loss was PLN 4.4m compared to a loss of PLN 9m in 2018. However, government restrictions during the pandemic have hampered the company’s recovery plans.

Gatta offers a wide range of hosiery – tights and leggings – as well as underwear for men and women, bodies, T-shirts, pyjamas, thermal underwear and other items of clothing. As of February 2021, it had 132 shops nationwide. Until 2017, Ferax was the market leader in underwear in Poland. The following year, the company had to give way to the leader Calz Polska, owner of the Calzedonia, Intimissimi and Tezenis brands.

PMR expert’s view

Karolina Szałas

Retail Market Analyst

The Polish underwear market is highly competitive; apart from the leading brands specialising in selling lingerie, there are many brands from the clothing segment on the market, part of whose revenue comes from this segment. What is more, hosiery, which is the main assortment of the chain’s stores, can increasingly be purchased in non-specialist outlets such as grocery shops, petrol stations, or kiosks – while doing other shopping. These places also compete on price with specialist shops. And it should be remembered that Poles are still price-sensitive consumers, especially of delicate, often disposable products.