Status: 03/03/2023 12:45 p.m
Peek & Cloppenburg, Germany’s largest fashion retailer, is insolvent. The company has filed an application for protective shield proceedings in Düsseldorf.
The fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C) is seeking rescue in protective shield proceedings in view of the difficult market situation. The management submitted the application on Friday in order to accelerate the restructuring process that had already been initiated, the company said.
All 67 sales outlets in Germany and the online shop should remain open without restrictions. The “Wirtschaftswoche” and the “manager magazin” had previously reported on it. According to P&C, it intends to use the protective shield procedure to reposition itself for the future. Individual locations should not be closed.
The protective shield is a judicial restructuring procedure with which the company can develop the measures required for restructuring and reorganization on its own responsibility and implement them at short notice – albeit under the supervision of a court-appointed provisional administrator.
Pandemic and war burden the business
During the corona pandemic, the company had to contend with a massive drop in sales: “The effects hit us hard and caused a three-digit million loss,” said Steffen Schüller, who has been the company’s managing director since June 2022.
In addition, customers are still reluctant because of Russia’s war against Ukraine. Delivery bottlenecks, increased costs, rising interest rates and the slight recession had further clouded the retailer’s economic situation towards the end of last year.
140 stores in 15 countries
An application for a protective shield procedure was also filed for Peek & Cloppenburg Retail Buying GmbH & Co. KG. Other companies of the group in Germany and abroad as well as the sister company Peek & Cloppenburg in Austria are not affected by the protective shield. They continue their business activities without restriction. This also affects the ANSON’S fashion houses in Germany.
Peek & Cloppenburg is one of Germany’s best-known fashion chains. The company, based in Düsseldorf, was founded in the Netherlands in 1869. In 1901, Peek & Cloppenburg opened its first German sales outlets in Berlin and Düsseldorf. Since then, the fashion company has continued to grow and, according to its own information, now owns around 140 stores in 15 countries.