Another fashion chain in Germany is about to go out. Zapata can no longer avoid bankruptcy. After almost 40 years of existence, the southern German company has to close all its branches.
The fashion industry is in crisis. Galeria Karstadt Kaufhof, Peek&Cloppenburg, Gerry Weber: They all struggle with financial problems. Now another fashion chain is added. Zapata from southern Germany is finally on the brink of collapse after the company had to file for bankruptcy at the end of last October.
Matthias Reinel from the HWR insolvency administration in Würzburg recently told the industry magazine “Textilwirtschaft” that “despite intensive efforts, it was not possible to continue”. Accordingly, the company has lost its appeal due to the renewed insolvency proceedings. In addition, the current market environment is extremely difficult for retailers.
Zapata will therefore have to close its last four remaining locations in Passau, Augsburg, Neu-Ulm and Würzburg. The online shop can no longer be reached. Around 30 employees are affected by the branch closures of the Würzburg fashion chain.
The financial difficulties of the company, which was founded in 1985 and offers “urban wear”, had already begun a few years ago. In 2016, Zapata filed for bankruptcy for the first time. 14 branches became 9, before the number shrank further to currently 4. The annual turnover was recently at five to six million euros.
Not only Zapata: Numerous fashion chains went bankrupt
Numerous other fashion companies are in a similar situation to Zapata. The men’s fashion manufacturer Ahlers, for example, announced at the end of April that it would file for insolvency for Ahlers AG and seven subsidiaries due to impending insolvency. A few days earlier, the fashion chain Gerry Weber had submitted an application for a so-called stabilization and restructuring process. The company finally announced a reduction in its branch network and job cuts. The Orsay fashion chain closed all its branches in Germany last summer and laid off its around 1,200 employees.
The department store group Galeria Karstadt Kaufhof and the fashion retailer Peek&Cloppenburg are also in financial distress. The latter sought rescue in a protective shield procedure in the spring in order to accelerate the restructuring that had already been initiated. At the end of last year, Galeria Karstadt Kaufhof had to seek rescue again in protective shield proceedings. As part of the approved restructuring plan, more than 40 of the last 129 branches are to be closed across Germany. Thousands of jobs will be lost as a result. Many shoe retailers, including Reno and Görtz, are also insolvent. The reasons for the crisis in the fashion industry include the corona pandemic and supply chain problems, a drop in demand due to the Ukraine war and high inflation.
Reno, P&C and Co.
Wave of bankruptcies in fashion and shoe chains: These shops are all insolvent
Sources: “”, with material from the dpa
Source: Stern
