Nine Paradis stores closing down

Bankruptcy of major franchisee behind closure of ice cream parlours – at least for the short-term

The ice cream chain Paradis has closed nine of its locations since Friday due to the bankruptcy of one of the chain's largest franchisees, RC Retail. 

Stores in Tisvildeleje, Vedbæk, Hillerød, Hørsholm, Hornbæk, Vejle, Fredericia, Kolding Storcenter and Vejle Bryggen have closed – at least for now.

“RC Retail expanded dramatically in 2014 when it opened seven new stores,” Per Hald from the law firm of Brandt & Lauritzen told Jyllands-Posten. “They made investments and renovated business premises. It has reportedly been too expensive.”

Profits, but not enough
Hald said that the stores were profitable, but the profits were too low to finance RC Retail’s large investment, so a court in Viborg declared the company bankrupt when it could not afford to pay salaries to its employees. 

“Negotiations have been underway to try and avoid the bankruptcy, but they failed,” said Hald.

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There were 53 Paradis outlets in Denmark before the nine were shut down. In addition, according to the Paradis website, there are two shops on the way in the US. 

Andersen said in June that Paradis would grow in 2014 and even more in 2015.

“It will be one or two years before we see any serious money,” Andersen told the industry magazine FødevareWatch in June. “We are using funds to develop new shops and open new stores. Growing a business requires investment.”