1. Number transparency: “Companies should set up professional liquidity planning and management,” says Wilde. The basis should be planning on a weekly basis, ideally taking different scenarios into account. “This also serves to check solvency.” If the insolvency has occurred, the liability risks for management increase considerably.
2. Negotiations: Fashion retailers have to enter into negotiations with their business partners to adjust their fixed costs. “In times of the pandemic, for an industry that is threatened by the very existence of the whole, only joint solutions can be found in cooperation between management, workforce, landlords and suppliers,” says Wilde. Short-time work, tax deferrals and state aid are the beginning of the liquidity conservation. Deferral agreements are also possible with suppliers and service providers. When talking to suppliers, attempts could be made to reduce orders or to order other product groups.
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