Symbolic image © istockphoto/Ilari Nackel
When a traditional business has to close, it’s always sad news for everyone – Employees, bosses and customers. Now it’s happening to a family business from Baden-Württemberg that is closing several branches and thus making a difficult decision.
Traditional medium-sized businesses and family-run businesses are having a hard time in the current economic situation in Germany. Many people have to give up their beloved business again and again, simply because there are no customers or there is no longer enough money. Now it’s hitting a family business from Baden-Württemberg that is irretrievably closing several branches.
Family-run company in crisis
At the end of August, the bankruptcy of the traditional shoe retailer Gero Mure shocked the Baden-Württemberg region. After over forty successful years, the family-run company was faced with massive financial problems. The high material costs and customers’ reluctance to buy led to significant losses. Despite the bankruptcy filing, the company remained open for the time being because the bankruptcy money secured the employees’ wages. So until the end of September everything went as usual. But the future of the company remains uncertain as not all locations could be saved.
The situation is particularly difficult for two branches in Mannheim. These are now finally facing closure because negotiations with potential buyers failed due to excessive rent demands. The affected employees also do not know how long they will be able to continue working here. Many have even signed termination agreements.
There is still hope for Baden-Baden and Karlsruhe
There seems to be no salvation for the Mannheim branches. But there are at least bright spots in other locations. A takeover by Schuhhaus Prange from Düsseldorf was arranged for a branch in Baden-Baden. Things are looking similarly good in Heidelberg and Karlsruhe. A newly founded Gero Mure GmbH will continue operations here. These developments offer a glimmer of hope, even though many employees have already terminated their employment.
The insolvency of Gero Mure clearly shows how even established companies can stumble due to economic challenges. It remains to be seen whether the restart at the remaining locations will be successful in the long term. One thing is clear, however: This will definitely not be the last bankruptcy of a traditional family business this year.
