Theo Wormland GmbH is insolvent.
The Hanover menswear retailer filed for insolvency in protective shield proceedings with the responsible insolvency court in Hanover on January 12th, Wormland announced on Friday. The court appointed lawyer Torsten Gutmann from the Pluta law firm as interim administrator. The company is supported in the process by restructuring expert Jens-Sören Schröder from the Hamburg law firm Johlke and his team.
As with other fashion retailers in Germany, the reason for filing for bankruptcy is the persistently high inflation and the resulting low purchasing power of customers. The sales achieved in 2023 were slightly higher than the previous year despite declining customer frequencies, but the company was still unable to compensate for the inflation-related cost increases in rents due to contracts concluded before the pandemic as well as in the energy, logistics and personnel areas.
Business operations will continue
During the protective shield procedure, business operations will continue to operate without restrictions and the twelve stores will remain open. The salaries of the 400 employees across Germany are secured for the next three months by insolvency money from the employment agency.
The Wormland management – consisting of Tim Kälberer, Bernd Sölter and Peter Wolff – now has three months in the protective shield procedure to present a restructuring plan to the creditors. According to Hanover, the renovation is expected to be completed by the summer.
“We want to continue to surprise and inspire our customers in style, be it digitally or with our knowledgeable staff. Our stores impress with their strong visuals and have become a unique selling point,” said the trio of managing directors. “Entrepreneurial pioneering spirit as the basic value of the founder of the same name, Theo Wormland, shapes all employees to this day and accompanies our innovation decisions.”