Görtz restructuring procedure opened: ‘Closure of numerous branches unavoidable’

The district court of Hamburg has now opened Görtz’s restructuring proceedings as planned, after three months ago a so-called protective shield procedure for the holding company and insolvency proceedings in self-administration for the two operating subsidiaries were applied for.

On October 28, the judicial restructuring proceedings of the parent company Ludwig Görtz GmbH and its operating subsidiaries Görtz Retail GmbH and Görtz Logistik GmbH were opened and self-administration ordered, the shoe retail group announced on Thursday. The opening of the procedure proves that “the restructuring that has started has been successful so far and is supported by the insolvency court,” according to Hamburg.

Several leases for branches have already been terminated

The aim of the company is now to be robust and future-proof again and “to retain as many jobs and branches as possible”. For this, the existing stores would have to become profitable so that Görtz remains competitive.

That is why the shoe retailer is currently in talks with landlords about “unprofitable branches that require significant rent reductions,” the statement says. This reduction could not be achieved at several locations, which is why Görtz has already terminated the leases. Employees are also affected by these closures. When asked by FashionUnited, the company did not say exactly how many locations and employees there were. For the affected employees, the company and the works council have agreed on a reconciliation of interests and a social plan.

“These steps are very difficult for us. But if the current reluctance to buy continues and we cannot achieve any significant rent reductions with our landlords, we have no choice: then we will have to close the respective branches,” says Görtz CEO Frank Revermann. “Otherwise we endanger the branches that are doing better and ultimately the chances of restructuring Görtz as a whole.”

The management is currently working with the support of the general agents on the creation of a restructuring plan, which will be submitted to the creditors for approval after completion and must be confirmed by the court.

“Even if our entire industry is currently in a difficult crisis, we are convinced of Görtz’s chances of restructuring. We have a clear course and a firm goal!” says Revermann.

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