The men’s outfitter Sør files for bankruptcy again.
Mönchengladbach-based Bonavest GmbH, the parent company of the men’s clothing retailer, has applied for restructuring under self-administration, as the company confirmed on Monday in response to a request from FashionUnited. Sør’s restructuring process is being supported by Sebastian Henneke, who has been appointed as provisional administrator, and the law firm BBORS Kreuznacht Rechtsanwälte.
This is the men’s clothing retailer’s second bankruptcy in four years. In 2021, parts of the insolvent Sør Rusche GmbH, which had already run into difficulties shortly before the corona pandemic, were taken over by the newly founded Bonavest GmbH as part of an asset deal. Behind the GmbH, which at the time guaranteed the continuation of 24 branches and the online shop, is Christian von Daniels, owner of the shirt specialist van Laack.
Now, almost three years after the takeover, rising costs and declining frequencies left no other option than another restructuring, according to the statement. Despite declining customer frequency, significant sales were achieved in the 2022/23 financial year, with an increase above the previous year’s level, although the cost increases could not be sustainably offset. This is based in particular on rental agreements from the pre-pandemic period as well as rising energy, logistics and personnel costs.
The process is expected to be completed in the summer
In the coming weeks, a restructuring plan will be presented to the creditors in order to complete the initiated process “as quickly and sustainably as possible”. The self-administration process is expected to be completed in the summer. Until then, business operations will continue without restrictions and the salaries of around 100 employees will also be secured. In addition, the management around managing director Oliver Lübbenjans will remain unchanged. This will structure and manage the reorganization and restructuring process, with the involvement of the restructuring representatives as well as the court-appointed administrator and the creditors.
“We want to continue to inspire our customers in the future, both stationary and digitally,” said a positive Lübbenjans. “Our various locations have been established for decades and have loyal, regular customers. The upheaval in the company and the realignment of the brands towards ‘quiet luxury’ are absolutely contemporary and are well received by customers. The path has been paved and now it’s time to lay the foundations for a sequel.”