The Düsseldorf fashion retailer Peek & Cloppenburg KG announced for the first time after the insolvency how many jobs are to be cut.
It was already clear to P&C at the beginning of March that jobs at the Düsseldorf group headquarters were to be cut as part of the protective shield procedure. A total of 350 out of 1,500 jobs should be in the central areas, according to a statement on Friday.
“In order to bring our company back into the profit zone, the organization must be realigned and costs significantly reduced,” says Steffen Schüller, Managing Director and CFO of Peek & Cloppenburg KG, Düsseldorf.
Employees switch to a transfer company
Peek & Cloppenburg KG, Düsseldorf, which is in the protective shield process, has the largest share of job cuts with just over 200 of around 800 jobs at headquarters.
According to P&C, some jobs can be cut, taking into account voluntary resignations, fixed-term contracts and probationary terminations. The majority of the other employees should be offered the opportunity to switch to a transfer company, which will prepare them for a new professional future. The clothing company did not disclose exact figures.
Some conversations with landlords are sluggish
In the 67 German branches, sales operations are currently continuing as before. None of the 6,000 jobs are to be cut here. P&C is also sticking to the opening of new stores in Bonn and Berlin, while negotiations on rents as a whole continue.
“However, we continue to closely monitor the general conditions and the profitability of individual locations. To this end, we are also in talks with our landlords in order to negotiate conditions in line with the market against the background of the current economic developments,” says Dirk Andres, Managing Director of Restructuring. “At some locations, however, the talks have so far proven unsatisfactory. It is more important than ever that we operate every store on a cost-covering basis.”
P&C’s three-month protective shield process ends in May. After that, a procedure in self-administration should follow. The goal is still to complete the entire insolvency procedure by the end of the year.