The well-known chain of clothing stores Inside continues to close establishments in Spain after ceasing activity in around 100 stores during 2025. Now, the fashion brand, owned by the Murcian company Liwe Española, has lowered the shutters of another 36 stores so far in 2026, a decision that comes in the midst of the economic crisis and with a debt that already reaches 69 million euros. The company is in bankruptcy and is trying to reduce its expenses to prevent the situation from getting worse.
It is not the only well-known company in the fashion world that is going through serious economic difficulties and has had no choice but to close part of its facilities. And the same thing happened to C&A, which had to close the shutters of 34 stores in France last year. In the case of Inside, the situation is especially delicate, since its debts exceed the value of all the assets that the company has, according to the report prepared by the bankruptcy administrators.
The chain, known for selling clothing and footwear at affordable prices, has been progressively reducing its commercial presence. In addition to the closures in Spain, it has also abandoned international markets such as Italy. Now, Liwe Española’s intention is to concentrate its activity on those establishments that are still profitable, maintaining around 200 operational stores.
Inside closes another 36 stores and has a debt of 69 million euros
Inside’s financial situation has not improved even though it has been trying to make all kinds of adjustments for some time. As detailed in the information published by ADSLZonewhich includes the report of the bankruptcy administrators Andersen Tax & Legal Iberia and Zubizarreta Procedures Concursales, the company accumulates a debt of about 69 million euros, while its assets are valued at approximately 46.6 million.
This means that, even if you managed to sell all the assets you currently have, you would still not be able to meet all of your obligations. The difference between both amounts leaves a deficit that exceeds 22 million euros.
The problem is that the economic difficulties come from behind. In April 2025, Liwe Española entered pre-bankruptcy and subsequently began the bankruptcy procedure to try to find a way out of its financial problems.
In fact, the company closed the last financial year analyzed with a negative net worth of 34.7 million euros and a negative working capital of 51.2 million. Figures that reflect the complicated situation that the historic fashion chain is going through.
For now, Inside keeps about 200 stores open and has not announced the definitive closure of the entire company. Its objective is to get rid of the establishments that generate the most expenses and keep those that can guarantee business continuity.
A crisis that comes from the pandemic
The company’s economic problems are not new, since the company has been showing poor results since the coronavirus pandemic, which they point to as one of the main reasons why its finances have worsened, since the temporary closure of stores caused sales to fall drastically at that time and not recover.
Added to this was the accumulation of clothing that could not be sold during those months. The situation forced Inside to launch discount campaigns to get rid of stock between 2023 and 2024, although this measure ended up reducing profit margins.
Of course, as Murcia Plaza states from the bankruptcy report, the administrators believe that the pandemic does not alone explain the crisis that the company is going through, but that there would be more reasons. The business has been losing money for years, with declining profitability and increasing dependence on external financing.
Among the company’s assets there are around 12 million euros in inventories, around 10 million in technical installations and another 5 million corresponding to the value of the brand itself.
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Now, the well-known Spanish fashion chain has to live through a decisive stage for its future. The closure of another 36 stores adds to the hundred establishments that stopped operating last year, while the company tries to reorganize its activity and regain economic viability. A situation that puts the continuity of part of its commercial network at risk, although it still has about 200 stores open in Spain.