The Berlin fashion label Lala Berlin is insolvent.
Lala Berlin GmbH has filed an application for insolvency proceedings in self-administration with the responsible district court in Charlottenburg, the company announced on Thursday. The court complied with this and ordered provisional self-administration. The court appointed attorney Torsten Martini from the law firm Görg as provisional trustee.
“The purchasing behavior of our customers is declining, especially against the background of the effects of the Ukraine war, the associated energy crisis and the high inflation rate,” explained Lala founder Leyla Piedayesh.
Lala Berlin initiates the sales process
According to the statement, Piedayesh had already initiated initial measures to resolve the liquidity crisis. The brand had already initiated a sales process before the application was submitted. There have already been “promising talks”, according to the Lala boss.
“Our goal is now to find a strong strategic partner as quickly as possible and to successfully complete the restructuring that has already been initiated together with him/her,” says Piedayesh. “Our internationally renowned brand, our broad fan community, our motivated team and, last but not least, our enormous growth potential are excellent arguments for investing in our label.”
The label is supported in the restructuring by the restructuring experts from Dentons. Attorney Dirk Schoen from the Berlin office of the business law firm was appointed General Manager.
“Under the given conditions, it offers Lala Berlin GmbH the necessary flexibility for sustainable restructuring, recapitalization and realignment in the interests of its creditors, suppliers, customers and employees,” says Schoen.
The business and sales operations of the brand will continue unchanged. The salaries and wages of the employees are taken over by the Federal Employment Agency for three months in the form of insolvency money.