Favorite piece is insolvent.
SLT GmbH Service & Logistics for Textiles behind the Favoritenstück brand has filed for insolvency under self-administration. A corresponding application was submitted to the Rosenheim district court on December 21st, Favoritenstück confirmed on Wednesday at the request of FashionUnited.
The label cites declining sales figures as the reason for the self-managed restructuring, which it associates with the changing purchasing behavior of customers due to the effects of the Ukraine war and the associated energy crisis and high inflation rate. The aim is now to create a restructuring concept in order to preserve the company and the jobs of its employees. Favoritstück is again supported by the restructuring experts Detlef Specovius and Michael Böhner from the law firm Schultze & Braun, who, as general representatives, support the management in the reorganization of Favoritenstück.
“The restructuring process under our own management is intended to give the company the opportunity to make the right adjustments and adapt to the changed market conditions,” say the two lawyers who are already supporting the restructuring of the fashion companies Bonita and Esprit.
Investors are an essential prerequisite for success
According to the restructuring experts, the entry of investors is an essential prerequisite for the success of the restructuring in order to provide the brand with additional liquidity. A targeted approach to potential interested parties will be started in the coming days, as the first expressions of interest should already have been received. Both the entry of investors into the existing company and the integration of the brand and sales structures into the portfolio of another fashion retailer would be conceivable.
“Our main concern is to use the possibilities of restructuring law in order to create an optimized future perspective for Favoritenstück,” says Managing Director Thomas Bungardt. “We are a brand that is highly valued by our target group. We want to continue to fully exploit this potential and are confident that we will succeed.”
The company’s business operations continue as usual, both stationary and online, and the wages and salaries of the 75 Favoritenstück employees are secured for at least three months.