The Textile Shoes Leather Goods Trade Association (BTE) fears another wave of insolvencies and closures due to demands for reimbursement of Corona aid.
Stationary fashion and shoe retailers are far from overcoming the effects of the corona pandemic. According to BTE estimates, sales at the end of September would on average be nominally in the mid-single-digit range above those of 2022, but “the vast majority of businesses are still well short of the pre-Corona level,” the industry association announced on Friday.
The sales are therefore still not sufficient for many textile and shoe stores to compensate for the high cost increases, for which the association cites the bankruptcies of well-known industry giants as evidence. However, the BTE is by no means expecting any improvement; rather, the association fears further bankruptcies and business closures, particularly due to upcoming or possible repayments of Corona aid such as Kfw loans and the bridging aid paid out during the pandemic.
While the bridging aid, according to the BTE, compensated for at least part of the losses and was thus able to save the existence of many companies during the pandemic, repayment could now become a major challenge.
BTE demands a clear solution from politicians
According to the BTE, reports from the industry that the current audit of the ÜBH final statement often leads to inconsistencies and new interpretations of the FAQ – all to the detriment of the dealers, are currently increasing. A number of companies have therefore already filed a lawsuit against the decision on their final invoice.
The trade association is now demanding “clear, fair and comprehensible solutions to the controversial questions of bridging aid” from political decision-makers in order not to “endanger the existence of thousands of textile, shoe and leather goods stores with tens of thousands of employees again”. A change in the current approval practice in favor of companies is absolutely necessary.
In order to support companies affected by the repayments, the BTE not only appealed to politicians but also prepared a six-page “position paper on the nationwide need for changes in the practice of the approval authorities for bridging aid” in collaboration with the Fieldfisher partnership of lawyers in Hamburg.