According to a company press release, C&A Serbia filed for insolvency after being "the target of organised customs fraud committed by unknown perpetrators."
"The perpetrators committed over 300 fraudulent acts in violation of Serbian customs regulations."
This decision affects 14 stores and approximately 135 employees in Serbia.
"This is a very specific situation that only applies to Serbia," the company stated.
"C&A Serbia has been the victim of organised customs fraud committed by one of its business partners and other unknown perpetrators." The alleged perpetrators carried out over 300 fraudulent imports in a systematic manner, taking advantage of 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 the Serbian Customs Authority first informed C&A of these fraudulent imports," the company said.
"Following months of investigation and despite evidence supporting the position that C&A Serbia should not bear the consequences of that crime," the company said.
"Following a thorough analysis of the situation, C&A Serbia's Management Team has concluded that the risks associated with further contesting the legal position upheld by the Serbian authorities cannot be responsibly borne."
Given the financial scope of C&A Serbia's demands, the Management Team was forced to declare insolvency today. "Future proceedings will be handled by an insolvency receiver," C&A Serbia stated.
According to the daily Blic, Serbia discovered that this company had been smuggling Chinese goods into the country for nearly seven years, causing a six-million-euro loss to the Serbian budget.