The Hagen-based fashion retailer Sinn is now in traditional insolvency proceedings after there were “different opinions about the further strategic direction of the restructuring” within the management.
The self-administration of Sinn GmbH was lifted by the responsible district court in Hagen on December 10th, the retailer announced last Tuesday. Sinn is now in traditional insolvency proceedings. This change in procedure should have no impact on the “renovation, which is going very well”. Those responsible plan to submit the restructuring plan to the court before Christmas. The creditors should then vote on this in January.
It is already clear that the stores in Rheine and Hildesheim will no longer be operated, a spokesman confirmed to FashionUnited. Negotiations are still ongoing at some locations. The store in Hildesheim, Lower Saxony, has its last day of sales on December 28th. At the start of the process, 36 of the original 41 locations should be continued, at least for the time being. In contrast, there are two new openings that Sinn confirmed in mid-October.
Insolvency proceedings opened after disagreements
Attorney Michael Mönig from the law firm Mönig Wirtschaftskanzlei, who was previously active as an administrator in the proceedings, was also appointed by the court as insolvency administrator and will continue to lead the restructuring. To this end, he will work closely with Sinn managing director Isabella Goebel and the restructuring expert Jan Ockelmann from the law firm SGP Schneider Geiwitz Nord, who was commissioned by the management.
The reason for the move to traditional insolvency proceedings was “different opinions about the further strategic direction of the restructuring” in the management. According to Hagen, no agreement was in sight. In order to prevent a delay in the procedure, the representatives of the creditors’ committee were first informed of this and then, with their consent, the change was initiated.
Sinn filed for self-administration insolvency proceedings at the beginning of August. This was justified by the overall economic situation as well as closures due to water damage and other structural reasons. These have led to a decline in sales while at the same time significantly increasing costs for rent, energy and logistics. In addition, the implementation of a new merchandise management system also entailed considerable additional effort.