The MyShoes shoe chain, which belongs to the Deichmann SE retail group, is about to go out of business.
Deichmann has decided with great regret to discontinue the business operations of the MyShoes sales concept due to long-standing and now significant losses, the MyShoes parent company said in response to a request from FashionUnited. The closure, which is scheduled to take place by the end of 2024 at the latest, will affect a total of 90 branches – 61 in Germany and 29 in Austria.
Business model is not sustainable
Similar to the end of the Deichmann subsidiary announced before the beginning of October
Oyngo the company attributes the end of the shoe retail chain to the business model being unviable in the long term. Despite years of extensive investments, product range adjustments, profile sharpening and optimization programs, the business model as an “all-round provider in the mid-price segment” was not sustainable in the long term.
Added to this was the current challenging situation in retail and the increased costs as well as increasing inflation and the associated uncertainty among consumers. All of these negative influencing factors would particularly affect fashion concepts in the middle price segment, which MyShoes is also in, according to the statement.
750 employees affected
The decision to issue the MyShoes concept affects a total of 750 employees, around 600 in Germany and another 150 in Austria.
The company strives to treat all partners fairly and to find a fair, socially acceptable solution for all employees. The aim is to have timely discussions with the works council in order to develop a concrete plan for the future of the employees. Negotiations with the landlords should also begin promptly in order to define the specific times when the individual stores will be closed.