The insolvent clothing retailer Orsay disappears from the German shopping streets. At the request of FashionUnited, the company confirmed on Friday that all branches in Germany will be closed by June 30th. “Despite several interested parties”, “no solution” could be found for the continuation of business activities. A company spokesman explained that the liquidity forecast deteriorated in March due to consumer sentiment. The specialist magazine Textilwirtschaft (TW) had previously reported on the decision. According to the clothing retailer, around 1,200 employees are affected and are now losing their jobs.
Last autumn, Orsay GmbH applied for protective shield proceedings due to “impending insolvency in the first quarter of 2022”, which finally turned into insolvency proceedings under self-administration at the end of January. At the time, the clothing retailer cited a drop in sales as a result of the Covid 19 pandemic as the reason for the financial problems.
According to press reports, the former owner, the holding company of the French entrepreneurial family Mulliez, has meanwhile passed Orsay on to the restructuring company Gordon Brothers. However, the rescue of the German branches did not succeed. According to a TW report, “no definitive decision has yet been made on how to proceed with the Orsay brand”.