Modefilialist operates 19 branches in Germany
The Corona crisis has also brought the fashion chain Reserved into financial difficulties. The German subsidiary of the Polish fashion group LPP has therefore submitted an application to the Hamburg district court to open protective shield proceedings. This was approved on June 9th. LPP Deutschland GmbH operates 19 Reserved fashion stores in this country as well as five online shops and employs 494 people. Operations in the German branches and online shops continue as normal.
“The opening of the protective shield procedure is the economic consequence of the Corona crisis,” the company said in a statement. “Due to the contact restrictions imposed for several weeks and the nationwide store closures, the company lost all of its sales in the Reserved branches.” Even after the reopening, sales in the stores were significantly below the previous year’s level. “The financial losses that have occurred so far cannot be compensated for in the long term,” is how the company explains its decision to go to insolvency court.
The company now wants to restructure itself under the protective umbrella. Reserved is obviously struggling, especially when it comes to rents. “We will be entering into even more intensive discussions with our landlords in particular in order to develop more viable solutions for the continuation of our tenancies in a collaborative dialogue,” announced managing director Martin Kanngiesser.
Matthias Wolgast from the law firm Münzel & Böhm is acting as provisional administrator. Arno Doebert from the law firm Reimer Rechtsanwälte, which specializes in insolvency law, took over the position of general representative. Martin Kanngiesser remains in office as managing director. LPP Germany is advised by the Möhrle Happ Luther law firm on restructuring and insolvency issues.
The Polish parent company LPP, based in Gdansk, operates a total of almost 1750 branches and has an annual turnover of 2,2 billion euros.
