The year 2024 has barely begun when there are already the first high-profile bankruptcies. In addition to the department store group Galeria and the KaDeWe Group, the fashion chain Wormland and the cosmetics retailer The Body Shop have also filed for bankruptcy. The number of company bankruptcies had already increased significantly in 2023: The Federal Statistical Office recorded a clear increase in bankruptcies compared to the previous year. The reasons are, on the one hand, acute economic difficulties in connection with inflation, energy prices and high costs. In addition, government support measures from the Corona years that kept some companies alive have expired. The obligation to file for insolvency was also partially suspended during the Corona crisis.
Fashion retailers, for example, are severely affected because, in addition to acute crises, they are also struggling with the general trend towards online shopping. Even big players like H&M have been thinning out their branch network for several years, others have had to reorganize themselves in bankruptcy or give up entirely. As early as 2022, 102 retailers and manufacturers of textiles have applied for insolvency proceedings, reports the industry magazine “Textilwirtschaft”. In 2023, industry giants such as Peek & Cloppenburg and shoe retailer Reno followed, among others. Not to mention the tragedy surrounding Galeria. Our photo series shows which well-known companies have recently fled into protective shield proceedings or had to file for bankruptcy.
Source: Stern
