Clothing: Creditors give green light to P&C restructuring

Clothing: Creditors give green light to P&C restructuring

According to the company, the creditors of the fashion retailer have accepted the insolvency plan submitted to the competent district court in Düsseldorf. What does that mean?

The creditors of the fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C) have given the go-ahead for the restructuring of the ailing company. The company reported that the insolvency plan submitted to the competent district court in Düsseldorf on Thursday had been accepted. This means that the insolvency proceedings in self-administration can be lifted by autumn.

According to the company, the insolvency plan approved by the creditors provides for extensive job security and a location guarantee for the Peek & Cloppenburg Group Düsseldorf in Germany as well as extensive investment commitments by the company’s main shareholder. For the creditors, however, the step should also mean the waiver of a large part of their claims.

The creditors’ vote is a decisive step in order to adapt P&C Düsseldorf to the changed market conditions and to reposition it for the future, said Dirk Andres, Managing Director of Restructuring.

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.

P&C had already announced in May that it intended to cut around 350 of the more than 1,500 jobs at the Düsseldorf headquarters as part of its restructuring efforts. “In order to bring our company back into the profit zone, the reorganization and a significant reduction in costs are necessary,” said Managing Director Steffen Schüller, explaining the step. The approximately 6,000 employees in the 67 sales outlets in Germany are not affected by the job cuts, it said.

Source: Stern

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