Gert De Caluwé | Neckermann Belgium
Gert De Caluwé was asked to manage the revival of the Neckermann new look in the midst of the Covid crisis and after the downfall of Neckermann Belgium and parent company Thomas Cook. His mission was to turn the company into a different tour operator than before. The experienced Ghent resident took up the gauntlet as he knew the sector through and through. He was supported by a respected private equity player in this challenge.
Let’s go back to the end of 2019 and that dark chapter for the tourism sector when Thomas Cook went under. Refresh our memory.
Gert De Caluwé: Thomas Cook was the parent company of three separate tour operators: Neckermann, Pegase, Thomas Cook (formerly Sunsnacks). The bankruptcy of the parent company led to an unprecedented shock wave. Over a thousand people lost their jobs immediately and 80 shops closed at Neckermann Belgium alone. Fortunately, a buyer appeared relatively quickly to prevent further misery. At the start of 2020, the Spanish Vamos bought Neckermann Belgium, specifically the retail branch (the offices) for a new start. However, Covid appeared in February 2020, and we all know the consequences. The tourism sector came to a standstill. For Vamos, a renowned name in the tourism sector, this solely and exclusively meant a loss of value of its investment. A painful matter, as a WCO followed immediately. A WCO is a procedure in the Commerce Court which aims to prevent the bankruptcy of companies experiencing difficulties whilst they still have sufficient potential. Neckermann Belgium apparently met these conditions. Two candidates stood up to get the company back on track. Ultimately, private equity party CIM Capital purchased the company with the promise of a relaunch. It had sufficient reason to do so, as the former Neckermann Belgium had a database of over 800,000 customers. However, CIM also stated that it would run the business differently.
Which meant?
Gert De Caluwé: In a traditional structure, a tour operator is responsible for both production (concluding contracts with hotels, essentially) and the sale of trips. CIM introduced a different strategic approach to the new look of Neckermann Belgium. Its focus would exclusively be on sales. Its added value would be offering comparative recommendations. The new Neckermann Belgium compares over 30 different tour operators to make the best proposal for the customer in question. With some goodwill, you could argue whether Neckermann Belgium is now just a SME or a technology company that analyses data and serves customers with a range of offers that no longer solely consist of sunny destinations.
Is the model introduced by the private equity party a success?
Gert De Caluwé: It should not be a surprise if I tell you that 2021 was a very difficult year, in part due to the Omicron variant. Everything changed from the start of this year and we are experiencing a boost, except for a brief period at the start of the war in Ukraine. However, we are now in overdrive with still a small team managed from the Kleindokkaai in Ghent.
How did CIM find you to manage Neckermann Belgium?
Gert De Caluwé: I have been working in the travel industry since the nineties virtually uninterrupted. My first job, around thirty years ago, was at Neckermann. You could say that the circle is now complete. I had the chance to discover that the informal network of a private equity player is very extensive. They were very well informed and considered me the ideal candidate. I considered it an opportunity and did not hesitate for long when I was given the chance. It was the perfect way to make use of my decades of experience. And I knew over 50 per cent of the staff from previous jobs.
“The added value of a private equity investor is undeniable”
Balance
Do you have a say in the developed strategy?
Gert De Caluwé: I dare to say that we have made this choice together. CIM is a partner with which I could make the right choices without great difficulties. We also made a clear agreement from the start: they would provide the financial contribution, and I was expected to execute the prepared five-year plan and expand the business. A perfect form of co-creation.
What is the definite added value of a private equity party like CIM?
Gert De Caluwé: We want to upscale Neckermann Belgium at some point, step by step. I already experienced that they have the right contacts to help achieve this ambition. For example, the ability to find more employees and the right reinforcements. I consider myself fortunate that I, and my team, have the necessary freedom to expand the business. Of course, with the required interim reporting. They respect our expertise when it comes to the tourism sector. Of course, it should be clear: we also feel a great commitment to our financiers. They are not disinterested or ‘distant uncles’; there is a great commitment to doing things right.
CIM Capital
CIM Capital is an Antwerp-based investment firm that has already successfully completed several company restructuring procedures. CIM Capital prefers to assist companies experiencing difficulties that require financial, and often operational, reinforcement. The private equity party likes to adopt an active role in the companies using a hands-on approach through the board of directors or support with specific projects.
CIM Capital is owned by Marc Van Hool, Bart Onderbeke, and Jan Peeters. For the incorporation and the management of the Capital Restruct Fund, this team was reinforced by Erik Verkest, former partner of Petercam, and until the end of 2019 managing partner at Degroof Petercam Corporate Finance, who has been appointed as the CEO of the fund and is responsible for the daily management.
(KC)