The HR Group has to file for bankruptcy after the search for investors was unsuccessful.
The district court of Osnabrück has already approved the insolvency application for nine German companies of the HR Group, which can look back on 130 years of experience in the shoe trade. The restructuring specialist Christian Gerloff was appointed provisional insolvency administrator.
The wholesale shoe retailer and logistics service provider HR Group had been in the process of restructuring for some time. As part of the realignment, the retail division with the shoe retailer Reno was already sold to Cm.Sports GmbH and GA Europe in October. According to the company, the search for an investor for the remaining system business and logistics divisions was initially “promising”.
“The insolvency application now became necessary after the well-advanced and promising search for an investor for the remaining system business and logistics divisions had surprisingly come to a standstill,” the company announced on Wednesday.
Reno triggered bankruptcy
The specific trigger for the unsuccessful search for investors is the recent application for insolvency by the shoe retailer Reno, for which the HR Group continued to work as a service provider in the areas of IT and logistics. In addition, the consequences of the pandemic, high energy prices, price increases and outstanding receivables are a burden. In addition, people’s persistent reluctance to buy is leading to lower demand in the shoe trade, which is affecting sales and liquidity, according to the HR Group.
“Almost the entire shoe trade is currently in crisis. At the same time, the system business and logistics are tried and tested business models in which the HR Group has expertise that is recognized and valued in the market,” says the provisional insolvency administrator Christian Gerloff.
While the provisional insolvency administrator and his team are getting an overview of the group of companies, business operations in all companies of the HR Group continue without restrictions. The group’s foreign companies in Poland, the Czech Republic, Slovakia, Romania and Hungary are not directly affected by the bankruptcy filings.
“Our priority now is to stabilize ongoing business operations and explore all options that will enable a viable future solution for the company and its employees. This is also in the interest of satisfying creditors as best as possible,” said Gerloff.