The German fashion industry is faltering and more and more companies are facing insolvency. You can read what they are here.
The German Business stumbles. The corona pandemic, the war in Ukraine and the energy crisis are causing problems for companies in this country. This is particularly noticeable in fashion companies. Inflation reduces the purchasing power of customers. The result: More and more shops in city centers are empty and even online shops are disappearing. We have summarized for you which companies are affected by the wave of bankruptcies.
Which companies filed for bankruptcy this year?
Some companies are affected by the wave of bankruptcies in the fashion industry. We have listed the most well-known ones below:
Hallhuber
All branches of the Munich fashion chain are closing and the online shop has also been closed. There is no new investor yet. However, the company says it is doing everything it can to ensure that it can continue to exist.
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Gerry Weber
Gerry Weber had to lose a large part of its branches due to bankruptcy. Only 49 of a total of 171 shops are noisy WirtschaftsWoche continued to operate in Germany. But at least there is a future for Gerry Weber: the company is to be realigned.
Lala Berlin
Lala Berlin is particularly well known in the Berlin fashion scene and is a favorite brand of many celebrities. Nevertheless, the company got into trouble because the crises of the present and the past also left their mark on this label. The HE DOES According to the company, business will continue without restrictions until further notice and the online shop is also still open.
Peek & Cloppenburg
The large fashion houses Peek & Cloppenburg are also insolvent. However, creditors saved the company. Again Westphalian Gazette reported that all 69 sales outlets in Germany as well as the online shop will be continued.
Gallery Karstadt Kaufhof
Galeria Kaufhof has been struggling with red numbers for a long time. However, the insolvency proceedings have now been ended – the company is to be restructured. However, around a third of the branches had to be closed, like that ZDF reported.
Zapata
After the second bankruptcy went loud Focus Online The lights finally went out at Zapata this year and the last four locations in Augsburg, Passau, Neu-Ulm and Würzburg also had to close.
Madeleine
The Franconian fashion mail order company Madeleine has also filed for bankruptcy. So far, business operations have been noisy HE DOES however, continue. The ailing company is currently looking for an investor.
Reno
The Reno shoe retailer filed for bankruptcy at the end of March 2023. Meanwhile he shared Westphalian Gazette with the fact that this has been overcome. There was little hope at first, but Reno was able to save at least 20 branches.
Goertz
The shoe retailer Görtz also had to struggle with the crisis and had to file for bankruptcy. But the good news here too: a foreign investor has been found and would like to subject the company to a “transformation” like that HE DOES reported.
Onygo
Onygo gives up. The company wants to close all branches by the end of August 2024 and the online shop will also disappear.
What exactly does insolvency mean for companies?
Not all insolvency is the same. A distinction must be made primarily between self-administration insolvency and standard insolvency. Companies like Görtz and Hallhuber are trying to save themselves and are using self-administration bankruptcy to do so. Regular insolvency, on the other hand, is more about the sale or dissolution of a company, as Sebastian Knapp, an expert in insolvency law, told the daily News explained.
In the event of self-administration insolvency, the management remains in office and implements the restructuring measures provided for in the insolvency plan. The management can also continue to dispose of the company’s assets. According to Knapp, this is checked by a so-called administrator who checks whether everything is done correctly. A prerequisite for this is that there is coherent planning.
“A self-administration plan essentially consists of two components: firstly, a financial plan and secondly, a restructuring concept. As part of the financial plan, those responsible must be able to show that a company is fully financed for at least six months under insolvency conditions; as part of the restructuring concept, concrete measures for the implementation of the Restructuring plan must be presented,” said the insolvency law expert Daily News.
By the way: A well-known fashion chain wants to expand into Germany and open its first branches in the fall.
