The Onygo clothing chain, which belongs to the Deichmann SE retail group, is about to go out of business. The parent company had already decided at the end of August “with great regret” to cease Onygo’s business operations “by August 31, 2024 at the latest,” said a company spokesman on Tuesday in response to a request from FashionUnited. The trade magazine Schuhkurier had previously reported on the decision in its online edition.
“Despite significant investments over the years, including during and after the corona pandemic, we unfortunately had to realize that our business model, which is aimed at a young, fashionable customer, is unfortunately not viable in the long term,” says Deichmann’s statement. The corresponding market segment is “dominated by very strong and international chains”. These would be able to cope with the persistently adverse conditions in the textile retail sector better than “less demand-driven concepts that have not been on the market for long, such as Onygo”.
Around 280 employees are affected by the closure of the retail chain
Onygo has expanded significantly since it was founded in 2016 and currently has 28 branches. According to its own statements, the parent company has now started negotiations with the landlords in order to “define the specific closing times of the individual sales outlets”. According to Deichmann, a total of around 280 employees are affected by the closure of the retail chain.
In view of Onygo’s financial development, “after a comprehensive examination of a wide range of options,” the responsibility for the entire group was ultimately the decisive factor in the decision: “In the interests of our entire workforce, it is our entrepreneurial duty to discontinue loss-making business models in case of doubt, in order to protect our capital “To be able to focus on economically viable business areas,” explained the Deichmann spokesman. “The recent crisis proved how important it is to position the company to be effective and crisis-proof.”