The clothing retailer Theo Wormland GmbH has filed for bankruptcy again. According to an announcement from the Osnabrück district court, the preliminary proceedings were opened on Wednesday. The lawyer Stephan Michels was appointed as the provisional insolvency administrator.
Ralf Napiwotzki, who will support the restructuring efforts as Chief Restructuring Officer (CRO), justified the step, among other things, with the currently particularly difficult situation in the men’s fashion trade. “Wormland is once again in economic difficulties. The fashion market is facing major challenges, as is the entire inner-city retail sector,” he explained in a statement. “Wormland is a strong brand and successfully appeals to young men. But the men’s fashion sector is suffering from ongoing purchasing reluctance. Due to low demand, men’s fashion is currently under even greater economic pressure than the women’s and children’s fashion segments.”
The men’s fashion retailer went through insolvency proceedings just last year
Wormland went through insolvency proceedings just last year. In January 2024, the company had to file for bankruptcy. The reason for this at the time was the effects of inflation, higher rents and increased costs in the areas of energy, logistics and personnel.
As a result of the proceedings, the retailer closed some branches. He also found a new investor in the shareholders of the Osnabrück family business Lengermann & Trieschmann (L&T). The insolvency proceedings were completed at the end of August last year.
The owner L&T admits misjudgments
Mark Rauschen, managing partner of L&T, admitted strategic misjudgments. “Looking back, as third-generation family business owners, we have made mistakes. Our strength is decades of retail expertise, but as investors we have no experience in company takeovers,” he explained, according to a statement. “Out of an optimistic attitude, we preserved too much of what we found at Wormland in 2024. We got involved in the planning of the managing directors at the time and realized too late that we would have had to make many clearer and deeper cuts.”
The two managing directors Peter Wolff and Tim Kälberer, who were in office at the time of the takeover, left the company last autumn. Daniel Reid then moved from L&T to head Wormland. Reid will continue to support the retailer “during the restructuring process that has now begun” and will then “leave the company at his own request in order to develop personally and professionally,” said Wormland.
Another investor process is planned
The provisional insolvency administrator is now looking for new donors. “We will soon start an investor process to reposition Wormland. The first interested parties have already contacted me – that’s a good sign,” explained Michels. At the same time, the company is implementing additional cost-cutting measures.
For the time being, the existing nine branches will remain open. The salaries of the currently around 250 employees are to be “secured for three months through an application for insolvency money at the employment agency,” the company said.
This post was updated on November 5th at 1:50 p.m. with additional information from a press release from Wormland.