Fashion: Modemarkt Closed submits bankruptcy application

The Hamburg fashion brand Closed has submitted an bankruptcy application. This emerges from a message from the company and the bankruptcy portal of the countries. The reasons are therefore a high debt and the costs that result from it. Basically, the German brand, which specializes in jeans, works profitably, it is said. Closed submitted the application at the district court in Hamburg on Tuesday.

“Closed is a great brand – I am very confident that we will find an investor for Closed and we receive closed as a Hamburg company,” said the preliminary insolvency administrator Stefan Denkhaus. According to the announcement, initial talks with possible investors have started.

Branches in Germany and in other European countries

Closed runs shops, sells fashion online and through dealers. According to the provisional insolvency administrator, Closed has 27 branches in Germany, Austria, the Netherlands, Belgium and Spain. There are also six outlets and nine franchise shops at home and abroad. The locations abroad are not affected by the bankruptcy application.

According to the provisional insolvency administrator, the fashion brand employs around 450 employees and recently generated sales of around 120 million euros. Which year the information refers is not evident from the message. The business is still open, said a spokeswoman for Denkhaus.

Accordingly, Closed recently achieved 40 percent of sales by resolding fashion to dealers. There are around 1,000 such business customers. The shops made up for 35 percent of sales. The online business has a share of a quarter.