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Retail: P&C Düsseldorf seeks rescue in protective shield proceedings

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Another large German retailer is experiencing turbulence. After Galeria, Peek & Cloppenburg Düsseldorf must also seek rescue in protective shield proceedings.

The fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C) is seeking rescue in protective shield proceedings in view of the difficult market situation. The management submitted the application on Friday in order to accelerate the restructuring process that had already been initiated, the company said. All 67 sales outlets in Germany and the online shop remained open without restrictions. The “Wirtschaftswoche” had previously reported on it.

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P&C wants to use the protective shield procedure to adapt to the changed market conditions in Germany and to reposition itself for the future. According to current plans, there are no plans to close houses, as the dealer emphasized. However, it is already clear that “a not insignificant reduction in staff in administration, including management levels” will be necessary.

The protective shield is a judicial restructuring procedure with which the company can develop the measures required for restructuring and reorganization on its own responsibility and implement them at short notice – albeit under the supervision of a court-appointed provisional administrator.

The Covid-19 pandemic led to a massive drop in sales

In 2020 and 2021, the Covid 19 pandemic led to a massive drop in sales at Peek & Cloppenburg Düsseldorf, the company reported. “The effects hit us hard and caused a three-digit million loss,” said Steffen Schüller, Managing Director of the company since June 2022.

In addition, the consumer behavior of customers is still very cautious due to the Ukraine war that has been going on since February 2022. Delivery bottlenecks, increased costs, rising interest rates and the slight recession had further clouded the retailer’s economic situation towards the end of last year.

An application for a protective shield procedure was also filed for Peek & Cloppenburg Retail Buying GmbH & Co. KG. Other companies of the group in Germany and abroad as well as the sister company Peek & Cloppenburg in Austria are not affected by the protective shield. They continue their business activities without restriction. This also affects the ANSON’S fashion houses in Germany.

Source: Stern

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