The Passau-based shirt and blouse specialist Eterna appears to be insolvent.
Eterna Mode GmbH is said to have filed an application for insolvency under self-administration at the Passau district court, reports the trade magazine Textilwirtschaft. FashionUnited does not yet have any further information on the background.
There have recently been some changes in management at Eterna. After Christian Bregovac was appointed as the new CEO at the beginning of the year, succeeding Fritz Terbuyken, he left the company after just a few months. Since then, the management says it has consisted of Head of Sales Dirk Heper and Chief Financial Officer Herbert Oelke.
The current insolvency proceedings will now follow after Eterna has restructured itself at the end of 2021. The reason for the restructuring process, which was initiated in August 2021, was a disagreement with the creditors over a deferral of interest for a bond issued in 2017 with a maturity in 2024.
The trigger for these problems was the consequences of the corona pandemic. Eterna had violated the terms of the promissory note because of the financial impact. The creditors of these securities then made demands that no more cash be allowed to flow out of the holding company. The result of this was that Eterna had to defer the interest of the bondholders.
Eterna has not yet responded to a request from FashionUnited.