The German fashion market remains challenging and the future of many smaller and larger companies remained exciting in the second half of the year. For open questions that were clarified (Esprit, Scotch & Soda), the uncertain retail climate raised new ones (Sinn, Gössl). At the end of the year, the planned mega merger of Zalando and About You was once again a topic of conversation.
With almost a quarter more corporate insolvencies overall than in the previous year – including significantly more major insolvencies – 2024 could set the course for the coming year, in which they could rise to record levels, according to the Creditreform business report. Here is an overview of the bankruptcies and takeovers in the German fashion industry in the second half of the year.
Out of
esprit
At the beginning of August it became known that the fashion group Esprit would close all of its 56 branches in Germany by the end of the year. Around 1,300 employees will lose their jobs as a result. Esprit’s business is currently winding down and the last stores closed at the end of November. A number of people expressed their sadness.
Shoe square
The Austrian successor company to the shoe retailer Salamander/Delka is insolvent. The insolvency proceedings of Schuhquadrat GmbH, formerly Salamander Austria GmbH, were opened in September due to an application from creditors. Last year, the Ara Group in Austria separated from the retail activities around Salamander Austria and Delka. Despite the takeover in Austria, it was already clear that there would be no continuation for Salamander Austria and Delka despite the investor. Accordingly, the stores were closed in the summer of 2023 and the brand withdrew from the shoe retail business.
Acquisitions
Zalando and About You
The German online fashion retailers Zalando SE and About You Holding SE want to work together in the future. At the beginning of December, Zalando announced that both companies had concluded “an agreement on a strategic business combination”. The Berlin-based group will now submit a voluntary public takeover offer to About You’s shareholders for their shares. The Executive Board and the Supervisory Board of About You therefore intend to recommend that the shareholders accept the offer.
Rise Up Fashion and Snocks
The Mannheim-based socks and underwear label Snocks took over the troubled Rise Up Fashion GmbH, the company behind the sportswear brand Oceansapart, in November. Through a subsidiary, the label secured the operational business of the online shop as well as the warehouse of the insolvent clothing provider. The transferring restructuring took place with the opening of insolvency proceedings on November 1st. The parties agreed not to disclose the purchase price.
Thousandkind and Vertbaudet
The Berlin children’s fashion brand Thousandkind was taken over by the French kidswear retailer Vertbaudet. With the takeover, Thousandkind will be offered as a shop-in-shop solution in the Vertbaudet online shop in the German, Austrian and Swiss (DACH) markets.
Lovely Sisters
Habitu GmbH & Co. KG behind the Lovely Sisters brand has been in preliminary bankruptcy since May. But there should be rescue for the Lovely Sisters brand and a large proportion of the employees. On July 1st, an investor took over the Lovely Sisters brand and a large part of the team.
New beginning
Yean’s Hall
Trender Jeansmode GmbH & Co. KG, operator of the fashion chain Yeans Halle, has completed its renovation. The insolvency plan was approved by the creditors and approved by the responsible district court in Stuttgart. The process is now completed and the company and the legal entity remain intact. Around 250 employees continue to work for the company. Three of the 16 locations had to close.
Scotch & Soda
The insolvency proceedings for Scotch & Soda Retail GmbH were opened at the beginning of September and most of the 40 German locations were closed. Nevertheless, the Dutch clothing brand should not disappear from the scene in Germany: The US group Bluestar Alliance, which owns the trademark rights to Scotch & Soda, is holding on to the market. The investment company, which owns brands such as Hurley, Catherine Malandrino and Tahari, wants to focus on reintroducing the brand in key European markets. To this end, Bluestar is now looking for new partners who will take on the markets. The strategy has already been successful in Belgium and Austria.
Future uncertain
sense
The Hagen-based fashion retailer Sinn is in traditional insolvency proceedings after its self-administration was lifted by the responsible district court on December 10th. According to those responsible, the change in procedure should have no impact on the “renovation, which is going very well”. They plan to submit the restructuring plan to the court before Christmas. The future of the branches is uncertain – while some, like in Rheine and Hildesheim, will not be continued, others are still being negotiated.
Gössl
The Austrian traditional costume specialist Gössl is insolvent and restructuring proceedings without self-administration have been applied for at the Salzburg district court for the companies Gössl GmbH and Gössl Gwand GmbH. The opening of the proceedings is “expected soon,” according to a statement from December. The two affected companies should therefore be “continued and restructured”. Gössl Trachten GmbH, which is not operational but holds the Gössl trademark rights, is not in danger of insolvency.
Kodi
The financially distressed retailer Kodi would like to restructure itself through protective shield proceedings. Kodi Diskontladen GmbH submitted a corresponding application to the Duisburg district court in November. The aim is to develop a restructuring plan with which the company can get back into the black. Business operations with 238 branches nationwide are currently being continued without restriction with all 1,800 employees.
Wilhelm Stift
The Austrian retailer Wilhelm Stift Gesellschaft mbH & Co KG filed for bankruptcy in November. The reasons include “pandemic-related profit slumps, price pressure and online competition from abroad as well as a shortage of skilled personnel,” according to the creditor protection organization Alpine Creditors Association. A restructuring plan application depends on the amount of proceeds from the sale. In addition to the Stift Mode headquarters in Tulln, there are two other stores of our own as well as two branches of the Palmers lingerie brand as a franchise partner. A total of 37 employees are affected by the insolvency.
Baby Sweets
The online retailer for kidswear Baby Sweets started its own restructuring process in October. The responsible district court in Halle (Saale) approves a corresponding application. Now the company is looking for investors, while business operations continue to run at full capacity.
Lena Hoschek
The label Lena Hoschek, which specializes in traditional costume fashion, applied for restructuring proceedings without self-administration at the Vienna Commercial Court in October. The reasons given were the general decline in consumer behavior in the fashion industry as well as difficulties and delays in the introduction of the new online shop and a new enterprise resource planning system (ERP system). In addition, there is the children’s clothing line Bunny Bogart, which was discontinued some time ago due to lack of profitability.
Despite these challenges, the company, founded in 2005, is sticking to the continuation of the label. However, a supportive investor is currently being sought for the planned implementation of the 2025 spring/summer collection. The label’s two stationary stores in Vienna and Graz as well as a total of 47 employees are also affected by the insolvency.
Signa
The department store and real estate company Signa filed for bankruptcy in November 2023, which also affected several subsidiaries and projects under development and is considered the largest bankruptcy in Austria since the Second World War. Signa Holding filed for bankruptcy proceedings in April. Signa owner René Benko has been insolvent since March.
Sports retailer Sportscheck was sold after bankruptcy, as was the department store group Galeria and the luxury department stores KaDeWe, Oberpollinger and Alsterhaus. The insolvent online outlet Dress-For-Less went to the British competitor Secret Sales. The Viennese luxury department store Lamarr, which is still under construction, was recently sold to the real estate investor Georg Stumpf; The Thai Central Group completely took over the operational business of the Swiss department store chain Globus. Further real estate sales are slow.