The creditors of the insolvent Peek & Cloppenburg KG Düsseldorf have voted in favor of the fashion retailer’s insolvency plan.
After the creditors unanimously decided in July to continue Peek & Cloppenburg KG, Düsseldorf and Peek & Cloppenburg Retail Buying GmbH & Co. KG, they now also approved the insolvency plan of the ailing Düsseldorf fashion retailer.
The approval of the insolvency plan drawn up by the management and the court-appointed trustee, lawyer Horst Piepenburg, is a decisive step for the measure that began in March 2023 to adapt the company to the changed market conditions as part of a court-ordered self-administration and to reposition it for the future Thursday from Dusseldorf.
What does the insolvency plan include?
P&C’s insolvency plan is based on an investor agreement with the main shareholder and is the core element of the restructuring of Peek & Cloppenburg KG, Düsseldorf, according to the announcement.
In the course of the current process, around 350 jobs, including management positions, have been cut to date. The plan is now intended to secure jobs and guarantee the location of the Peek & Cloppenburg Group in Düsseldorf in Germany. In addition, the company would also receive extensive investment commitments from the main shareholder.
“With the acceptance of the plan by the creditors, we have created the essential basis for setting up a sustainable capital structure for Peek & Cloppenburg KG, Düsseldorf, so that we can focus on the operational challenges ahead,” says Steffen Schüller, Managing Director and CFO of Peek & Cloppenburg KG, Düsseldorf.
In the next step, the company’s insolvency plan must now be confirmed by the competent district court in Düsseldorf. The self-administered insolvency proceedings of Peek & Cloppenburg KG, Düsseldorf, could then be lifted as early as autumn.
Was there an increase in the offer for creditors?
According to the textile industry, the reason for the approval of the creditors could also have been a possible increase in the company’s offer for the creditors.
Referring to the information available to them, the industry magazine reports that creditors should now receive 50 million euros instead of the 35 million euros mentioned in the insolvency plan. In a second step, the creditors should also participate in the company profits in 2024 and 2025 via a debtor warrant. According to the textile industry, which refers to the insolvency plan available to it, the total claims of the creditors should amount to 380 million euros. Peek & Cloppenburg has not yet responded to a request from FashionUnited in this regard.
This post was updated on August 24 at 2:35 p.m. with more information.