Status: 07.06.2022 1:14 p.m
The Orsay fashion chain will close its remaining 130 branches in Germany by the end of the month. Around 1,200 employees will lose their jobs.
The fashion chain Orsay closes all its branches in Germany. “I can confirm that Orsay will close the remaining 130 locations in Germany by the end of June,” said company spokesman Wolfgang Weber-Thedy of the “Rheinische Post”. According to Weber-Thedy, almost 1,200 employees will lose their jobs as a result. “We very much regret that.”
After the corona pandemic had put a heavy strain on business, the propensity to consume in Germany had been pushed down even further by the Ukraine war, the reasoning said. Therefore, the insolvency proceedings under self-administration, “on which we had placed great hopes”, could not be continued.
According to the information, the company once had 197 locations in Germany, 67 of which had already been closed at the end of April as part of the renovation. Since it was not possible to find an investor under the current economic conditions, the closure decision made at the end of March must now be implemented, said the company spokesman.
State money didn’t help
State aid had not helped the ailing company based in Willstätt, Baden-Württemberg. According to its own statements, the company received an aid commitment of 33 million euros from the federal government’s Economic Stabilization Fund (WSF) last year, but only called up part of the money. The shops are now also being closed in other countries, and this has already happened in Austria.
According to the credit agency and debt collection service provider Creditreform, Orsay GmbH was the second-biggest insolvency in Germany last year, based on the number of employees affected. Only the case of Adler Modemärkte AG was even larger.