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The Murcia-based company behind fashion chain Inside has closed another 36 shops since the start of 2026 as it continues a major restructuring to keep the business alive.
Liwe Española, based in Puente Tocinos, now has around 200 stores in operation, following a programme of closures that saw 100 outlets shut during 2025. The company has also withdrawn from markets including Italy as it focuses on its more profitable operations.
However, the latest figures show just how difficult the road ahead remains. Liwe is currently facing €69 million in accumulated debt, while the estimated value of all its assets is around €46.6 million. That leaves a potential shortfall of approximately €22 million.
A large part of the company's assets is tied up in stock still waiting to be sold, valued at around €12 million. Its technical installations are worth another €10 million, while the Inside brand itself has been valued at approximately €5 million.
The company is currently going through insolvency proceedings as it looks for a way to restructure its finances and avoid liquidation.
Liwe previously pointed to the Covid pandemic as a major factor behind its financial problems. The temporary closure of shops and restrictions on trading led to a fall in sales, leaving the company with large quantities of unsold stock. Much of that stock was eventually cleared through heavy discounting in 2023 and 2024, but the move also hit both turnover and profit margins.
The company also faced changes to its financing arrangements, with some working capital facilities converted into publicly backed loans that later had to be repaid.
The administrators overseeing the insolvency process say these factors contributed to the crisis, but argue they aren't the whole story.
They assess that Liwe's underlying profitability has been deteriorating since 2023, with falling margins leading to repeated losses, a shrinking net worth and greater reliance on outside financing.
By 2024, the company's financial position had become seriously unbalanced. In 2025, it reached a critical point, with insufficient cash being generated to meet its obligations.
Liwe ended that year with negative net assets of €34.7 million and a negative working capital position of €51.2 million.
The administrators also point to a sharp reduction in bank support during 2024 and 2025, with working capital facilities falling by as much as 60% by the end of 2025.
The pandemic and tighter credit made the situation worse, but the deeper problem is the long-term decline in the profitability of the company's core business.
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Images: Inside stores
