The bankruptcy of Closed became known at the beginning of August. Since then, the media reports have not been tearing off the former cult denim label. What has been known so far.
Unclear processes?
At Closed, financial examiners are said to have found “irritating millions of millions”, according to the latest report by Manager Magazine on Monday. Among them are said to have flowed seven-digit payments to ex-financial chief Hans Redlefsen. After a request from Fashionunited, Closed did not comment on the content of the report.
The preliminary insolvency administrator Stefan Denkhaus announced the following on Tuesday: “Of course we secure all documents of the company and in the second part of the procedure, if the necessary measures are on the way to receive Closed, look at everything that may seem unusual to us. This is part of every bankruptcy procedure.”
However, it is confirmed fact that Redlefsen resigned in July after 27 years at his own request. This emerges from a report by the spin-off specialist magazine. In his place, Lothar Hiese was appointed to the management team around Gordon Giers and Til Nadler as the new commercial managing director. The insolvency administrator confirmed this latest personnel on request.
Hiese is considered a proven restructuring expert and announced that it was concentrating on the company’s profitability – so no more sales at all costs. The company’s future strategy should also be geared towards customers, although the basics in the areas of wholesale, retail and online business are good.
Persona Redlefsen
After his office was put down as managing director, Redlefsen continues to hold shares in Closed as a partner, according to the spin-off report. The insolvency administrator did not comment on a request from fashionunited to the shares.
Hans Redlefsen led the fashion company Closed as a trio with his friends of study Giers and Nadler. Redlefsen and Giers got to know each other as friends of study in London, as the former commercial managing director told in a podcast of the Family Office Kontora a year ago. Later they bought Closed from the previous generation, which also included Gordon Gier’s father. Under the trio, the collection of jeans consisting of further clothing and accessories was expanded.
Insolvency and investor: inside search
The resignation of Redlefsen has already signaled that it cried at Closed. At the beginning of August, the Hamburg fashion label reported bankruptcy. The preliminary insolvency administrator Stefan Denkhaus was confident that investor: inside could soon be found. Talks with the first prospect: Managing Director Giers and Nadler said in a message.
The Munich-based company Wieselhuber & Partner was commissioned with the M&A process, the specialist magazine Textilwirtschaft reported last week. The insolvency administrator confirmed this information and referred to a “great interest” of Closed.
“There are a large number of interested parties. I am optimistic that there will be an investor solution,” said Denkhaus by email. “The bankruptcy proceedings have been running for 14 days, it is now too early to answer further questions.”
Key figures
The bankruptcy of Closed was a consequence of the excessive debt and the associated financing costs, the company said in early August. According to the group balance last published in October 2022, the debt was 50.5 million euros at the time.
Closed is “fundamentally profitable” and has been able to increase its sales in recent years, emphasized the announcement in early August. In the nine months before the bankruptcy application, Closed is said to have achieved sales of 84 million euros, as the textile industry reported last week. Denkhaus did not want to provide any information about the numbers.
Officially confirmed BRL, the law firm of the insolvency administrator, but the following figures at the beginning of August: Closed is said to have recently generated an annual turnover of around 120 million euros. Around 40 percent come from the Wholesale business, 25 percent from e-commerce and 35 percent from inpatient direct sales.
According to a report by Manager Magazine, a renovation report from the Hamburg Mittelstandsberatung Ecomyc for Closed should have come to the conclusion that only a “limited Vetrauen in Financial Data” is available. A high salary structure and personnel overcapacity are to blame for the misery of Closed, the report said.