2024 begins with two bankruptcy filings within a few days. In addition to the Galleria Karstadt Kaufhof, the Wormland Fashion chain was also affected.
HANNOVER – Will German city centers soon become emptier? Hannover-based Fashion Retailer Wormland has filed for bankruptcy in the protective shield proceedings.
The fashion chain Wormland operates branches in these German cities:
- Berlin
- Bremen
- Bochum
- Dortmund
- Frankfurt am Main
- Hamburg
- Hanover
- Munich
- Nuremberg
- Oberhausen
Fashion Retail Files for Bankruptcy: This is how things must continue with Wormland
Like the Wormland fashion series It was announced that the twelve branches in total will remain open Accommodation. The roughly 400 employees can also breathe a sigh of relief at the moment. According to the company, their salaries for the next three months are secured by insolvency funds from the recruitment agency. In addition, the management of the company remains the same.
According to information, the reason for insolvency procedures is high inflation and the resulting weak purchasing power of consumers. The areas of rent, energy, logistics and personnel are particularly affected by inflation-related cost increases. Although sales achieved in 2023 were slightly higher than the previous year despite the lower frequency of customers, they were not able to offset the costs.
Two fashion chains file for bankruptcy: financial problems at Galeria Karstadt Kaufhof
The company was founded by Theo Wormland in Hanover in 1935, and was considered a “pioneer of men's fashion.” Over the years, more and more branches have been added. The protective shield procedure is scheduled to be completed in the summer of 2024.
Also this week, department store chain Galeria Karstadt Kaufhof filed for bankruptcy. It went bankrupt again as a result of the financial problems of its Austrian parent company, Signa. The company said that an application for bankruptcy was filed with the Essen District Court on Tuesday. Accordingly, Galleria seeks to change ownership in order to free itself “from the framework conditions established by Cigna.”
