Bad news from the German fashion industry has been piling up for years, and renowned manufacturers and retailers have not been doing well for a long time either. Now Adler Modemärkte has also been hit: the company filed for bankruptcy due to over-indebtedness.
Aschaffenburg – The insolvency of the international fashion retailer Adler Modemärkte is taking its course: The Aschaffenburg Regional Court confirmed the receipt of an application for insolvency by Adler Modemärkte AG on Monday. An expert had been commissioned to check whether the processing of the bankruptcy on one’s own responsibility was possible, said the responsible insolvency judge Jürgen Roth of the German press agency.
The listed company announced on Sunday that it had filed for insolvency proceedings in self-administration due to overindebtedness. The reason for this is the corona lockdown. The aim is to reorganize the company through an insolvency plan. Business operations are to be continued in full.
“Despite intensive efforts, the company was not able to close the liquidity gap that had arisen by injecting capital through state support funds from investors,” the company says.
Subsidiaries also apply
The board of directors remains authorized to administer and dispose of. The board of directors has appointed the lawyer Christian Gerloff as general representative to provide support. Adler Mode GmbH, Adler Orange GmbH & Co. KG and Adler Orange Verwaltung GmbH – each wholly owned by subsidiaries – have also decided to apply to the Aschaffenburg District Court to open insolvency proceedings under self-administration.
Adler Modemärkte AG, based in Haibach near Aschaffenburg, is one of the largest textile retailers in Germany. The group had a turnover of 495.4 million euros in 2019. Adler last employed 3,350 people and operates 171 fashion stores, 142 of them in Germany. The foreign subsidiaries are not affected by the bankruptcy, it said.
Adler changed hands several times
Like other companies in the fashion industry, Adler, once founded in Annaberg, Saxony, has an eventful history behind it. Company founder Wolfgang Adler sold his company to the Metro Group in the early 1980s. Adler later changed hands several times, including financial investors.
Many companies in the fashion industry were not doing well before the Corona crisis. They had little to counter the triumph of online retailing and the success of fast fashion providers such as Primark or Zara. Big brands like Hugo Boss, S. Oliver or Esprit had to give up, others like the ex-Adler owner Steilmann went bankrupt. When the coronavirus first caused nationwide shop closings in Germany in spring 2020, it hit an industry with already weakened manufacturers and retailers.