Due to the difficult market situation, the Düsseldorf-based company Peek & Cloppenburg (P&C) is seeking salvation in the “protective umbrella” procedure. The company’s management has filed a request to speed up the restructuring process, which has already begun, the press service said. All 67 stores in Germany, as well as the online store, will remain open without restrictions.
P&C wants to use the “protective umbrella” procedure to adapt to changing market conditions in Germany and reposition itself for the future. Under current plans, the retailer does not plan to close any stores. However, it is already clear that “a slight reduction in administrative staff, including at managerial level” will be necessary.
The “protective umbrella” is a legal procedure that allows the company to work out the necessary measures for restructuring and reorganization under its own responsibility and to implement them in the short term, but under the supervision of an administrator temporary appointed by the court.
Massive drop in sales during Covid 19
In 2020 and 2021, the pandemic caused a massive drop in sales, the company said. “This resulted in triple-digit losses of $1 million,” said Steffen Schüller, CEO of the company since June 2022.
Moreover, according to him, customers’ consumption behavior has remained very cautious due to the military conflict in Ukraine. Delivery issues, rising costs, rising interest rates and a mild recession further clouded the retailer’s economic picture late last year.
There will be no mandatory layoffs.
P&C CEO Thomas Freude told WirtschaftsWoche that the company, which employs around 6,800 people, is likely to do without mandatory layoffs at its stores. “We assume that we will be able to complete the procedure by the end of the year at the latest.”
Based on the results, it will be determined which creditors are willing to make concessions so that the company can continue its activities. The owners’ family have “already pledged their support in principle”.
Abroad, the company was not affected
A request regarding the need for a “protective umbrella” procedure has also been submitted to Peek & Cloppenburg Retail Buying GmbH & Co. kg.
Other group companies in Germany and abroad, as well as sister company Peek & Cloppenburg in Austria, were not affected. They will continue their activities without restriction. This also applies to ANSON’S fashion stores in Germany.
Germany says this:
The second subsidy for paying for heating – when the money is transferred
Which heating systems will be banned after 2024
Holidays in Mallorca will increase by 33% this year
Energy price caps, summer time, mourning for beer drinkers, social security contributions for creative people, what to expect from March 1
Sensation in Germany: “Düsseldorf patient” cured of HIV and cancer
Reimbursement for gas and electricity varies by state
Drug ads need to be changed to reflect gender differences
Cash is prohibited – card purchases only?
Unscrupulous traders – prices increase between the counter and the cashier
A wave of diseases after the carnival
Will 2024 be the end of the Wagner era?
For latest updates and news follow The Eastern Herald on Google News, Instagram, Facebook, and also on Twitter.
Click here to show your support.
