The insolvency proceedings in self-administration for the fashion chain are proceeding as planned. What about the future of the branches and the employees?
As expected, the District Court of Düsseldorf today opened self-administration proceedings for the insolvent fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C). This emerges from a statement from the court.
Branch closures are still not planned. “All sales outlets and online shops are still available to customers without restrictions,” said Dirk Andres, Managing Director of Restructuring.
The planned reduction of 350 of the more than 1,500 jobs in the Düsseldorf central administration has already been largely implemented. According to the company, the approximately 6,000 employees in the 67 sales outlets in Germany are not affected by the job cuts.
reorganization of the company
In March, the traditional company had sought rescue in a protective shield procedure in view of the deep red numbers. In the case of the insolvency variant aimed at restructuring, a court-appointed administrator takes over the supervision of the rescue.
Management retains control, but is advised by an external restructuring expert. The company Peek & Cloppenburg Hamburg, which is independent of P&C Düsseldorf, is not affected by the protective shield procedure.
The core element of the restructuring is the restructuring plan, which will provide all the details for the reorganization of the company and an agreement with the creditors, it said. Good progress is being made in adapting the company to the changed market conditions and repositioning it for the future, explained Managing Director Thomas Freude according to the announcement.
The opening decision ends the period in which insolvency money was paid by the Employment Agency. From June, the wages and salaries of all employees would be paid in full again, it said.
The development of the restructuring plan continues to run at full speed, Andres continues. “We anticipate that the court hearings to discuss and vote on the plan have been prepared and completed over the summer.”
The aim remains the same, to complete the proceedings of Peek & Cloppenburg KG, Düsseldorf, and the purchasing company Peek & Cloppenburg Retail Buying GmbH & Co. KG before the end of the year.
Source: Stern
