The fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C) has applied for a protective shield procedure at the Düsseldorf District Court. The company announced this on Friday. Restructuring expert Dirk Andres from the law firm Andres Partner supports the management with the restructuring, it is said. All 67 branches in Germany and the online shop remained open without restrictions.
In 2020 and 2021, the Corona crisis led to a massive slump in sales, which put a heavy strain on the company’s liquidity, it said. “The impact has hit us hard, causing a loss in the three-digit million range,” said a company representative. Now the fashion retailer is also suffering from poor consumer behavior as a result of the Russian invasion of Ukraine.
The fashion retailer had greatly expanded and invested in its online activities during the pandemic. The strategy should now be reconsidered and adjusted. Business operations continue without restrictions. According to current plans, there are no plans to close branches. P&C Managing Director Thomas Freude said business week, the company with around 6,800 employees will probably be able to do without redundancies at its branches. He expects the protective shield procedure to be completed soon: “We assume that we will be able to complete the procedure via an insolvency plan by the end of the year at the latest.” It will then regulate which creditors are willing to make which concessions so that the company can continue. The owner family have “already signaled their basic support”.
The clothing store chain Peek & Cloppenburg (Hamburg) has been an independent company since 1911 and is not affected by the insolvency proceedings of the Peek & Cloppenburg chain (Düsseldorf).