Companies

Austria and Germany continue to see a wave of insolvencies and closures

Dec 12, 2023 Germany

Richter Schuhe, Europe’s oldest children’s shoemaker, and fashion retail chain Aachener have filed for bankruptcy. Deichmann to close its My Shoes stores in Austria and Germany by the end of 2024

The 130-year-old Austrian children’s shoe manufacturer Richter Schuhe has filed for bankruptcy with the Graz regional court. The court has opened restructuring proceedings without self-administration and appointed the Graz lawyer Arno Roman Lerchbaumer as insolvency administrator.

With liabilities of over 7.9 million euros and assets estimated at just 920 000 euros, the financial figures point to deep-rooted problems within the company, which has been badly hit by the long COVID-19-related lockdowns.

Twenty employees have been affected, four of whom are in Germany, as well as around 115 creditors. Under the restructuring plan, creditors will receive 20% of the claimed sums, payable within 24 months after approval of the restructuring plan.

Footwear retailer My Shoes, a subsidiary of the German group Deichmann, has also announced that it will close 90 stores in Austria (29) and Germany (61) by the end of 2024. This decision will affect 750 employees (150 in Austria and 600 in Germany). Deichmann concluded that the impact of the pandemic, the war in Ukraine and the Middle East, the increased costs and lower consumption have made the medium-segment business unsustainable.

TEH Textilhandel GmbH, owner of fashion retailer Aachener, has also filed for insolvency at Dortmund District Court. For the time being, its seven stores will remain open.

Sources: shoeintelligence.com and laconceria.it

Image Credits: ebay.com

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