Pepco Germany enters self-administration proceedings

The German subsidiary of the discounter Pepco Group is insolvent.

Pepco Germany GmbH filed for self-administration proceedings on July 21 with the Berlin-Charlottenburg Local Court, the retailer announced on Wednesday. The court then ordered provisional self-administration, the so-called protective shield proceedings, and appointed Gordon Geiser of the Berlin law firm GreenbergTraurig as the provisional administrator.

Pepco to realign store network in Germany

Pepco operates 64 stores in Germany, primarily located in the east of the country. These will remain open during the proceedings and will continue to be supplied with the latest collections.

Following its market entry in 2022, the store network has faced numerous challenges. It is currently operating at a loss, according to the announcement. The aim now is to realign Pepco in the German market and position it for long-term success. As a shareholder, Pepco Group has already declared its willingness to support the restructuring process and secure its financing.

Christian Stoffler joins Pepco management as chief restructuring officer

The existing management team is also being supported by Christian Stoffler of the Munich law firm Gerloff Liebler Rechtsanwälte, who is taking on the role of chief restructuring officer. He brings many years of experience in the fashion and retail sectors.

"Pepco Group has proven over the past 20 years that its retail concept and product range are successful in Europe," said Stoffler. "Therefore, we also see good opportunities to realign the store network in Germany so that it can develop successfully in the challenging German retail market. The protective shield proceedings give us the opportunity to quickly implement the necessary measures."

This article was translated to English using an AI tool.

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Insolvency

Pepco Germany GmbH

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