Orsay initiates bankruptcy proceedings in November
The corona crisis has hit fashion retailer Orsay hard in recent years. According to Merkur, the company applied for protective shield proceedings at the Offenburg district court on November 26 because of impending insolvency. In addition to the lockdowns caused by the pandemic, general delivery bottlenecks and price increases also weighed on the fashion company. Even measures such as short-time work benefits and KfW liquidity support were unable to remedy the situation. In addition, Orsay was awarded a loan of 33 million euros from the State Economic Stabilization Fund (WSF), of which 15 million euros were disbursed in August 2021. However, the remaining amount of 18 million euros will no longer be used.
All leases have been terminated
After it was originally said that only 79 of the 197 German branches were to be closed, it has now become known from real estate circles that Orsay GmbH has apparently terminated all of its rental contracts as of July 1, 2022, as reported by the Berliner Zeitung. After insolvency proceedings were initiated in November, the fashion retailer apparently negotiated with the landlords about adjusting the shop rents. Originally, it was only supposed to be closed where the rent could not be reduced sufficiently. The fashion company explained to the Berliner Zeitung that, according to the latest information, the continuation of the stationary shops in Germany is still open. The contracts are said to have been terminated only as a security measure. However, these are not only rental contracts, but also employment contracts. According to company spokesman Wolfgang Weber-Thedy, around 800 employees will be affected.
Company is looking for a new operator
In order to be able to continue business in Germany, the company is currently looking for a new operator. According to the Berliner Zeitung, Weber-Thedy is currently in talks with various potential partners. The company spokesman even speaks of “very good chances of continuing” the business in Germany. Nevertheless, the decision was made to make the precautionary terminations. A new operator would therefore have to look for new staff for the branches.
E. Schmal / Editor finanzen.net
Image sources: Vytautas Kielaitis / Shutterstock.com