The Austrian branch of the Orsay fashion chain, which operates there under the company name Ordia Handels Ges.mbH based in Vienna, filed an application for the opening of bankruptcy proceedings at the Commercial Court in Vienna on April 28.
Discussions with potential investors have failed, which is why this step has now become necessary, writes the Austrian creditor protection association KSV1870 in a press release. Ordia operates 51 Orsay branches in Austria and, according to the debtor, has accumulated total liabilities of around 15 million euros. 239 employees and around 110 other creditors are affected by the forthcoming insolvency.
No redevelopment is intended
“Based on the information available, KSV1870 assumes from today’s perspective that the debtor company cannot be continued in the medium term and that the insolvency administrator to be appointed by the Vienna Commercial Court has to liquidate the company,” KSV1870 continues. According to the information provided by the debtor, no restructuring is being sought, it is said.
Bankruptcy as a result of the pandemic
The Austrian subsidiary of the German Orsay GmbH is now also insolvent. This had already applied for the protective shield procedure in November 2021 due to impending insolvency. At the end of January, the protective shield became self-administered insolvency proceedings.
Although it was said in January that only 79 of the then 197 German branches of the ailing fashion chain would close, it became known at the beginning of April that apparently all German locations of Orsay GmbH had terminated their rental contracts “as a precaution” by July 1, 2022.
The reason given is the loss of sales during the pandemic, which could no longer be compensated for.
Orsay belongs to the French Mulliez Group and has more than 700 stores in 34 countries. Mulliez also owns the fashion chain Pimkie, which also filed for bankruptcy last year and reduced the number of its branches in Germany.