German fashion brand Closed files for insolvency

Hamburg-based Closed GmbH has filed for insolvency. The brand filed the application with the relevant district court in Hamburg on Tuesday. Stefan Denkhaus, a lawyer from the BRL law firm, has been appointed as the provisional insolvency administrator.

The insolvency was necessary due to excessive debt and the associated financing costs. Operationally, the company, with its healthy sales structure of wholesale, online and brick and mortar retail, is fundamentally profitable. Turnover has developed better than the market.

Business operations will continue during the proceedings. Insolvency benefit pre-financing for the workforce has already been initiated. Suppliers and other business partners will now be involved in the process.

The aim of the provisional insolvency administrator and the management is a swift investor process. Initial "promising discussions" with potential investors have already begun, according to managing directors Gordon Giers and Til Nadler.

"Closed is a great brand – I am very confident that we will find an investor for Closed and that we will retain Closed as a Hamburg-based company," said Denkhaus.

Closed operates 36 stores in Europe, 26 of which are in Germany. In addition to its home market, the brand also has shops in Switzerland, Austria, Belgium, the Netherlands, the US and Spain.

This article was translated to English using an AI tool.

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