Omnichannel player wants to restructure itself under self-management
On March 6, 2023, Shoepassion GmbH filed an application to open insolvency proceedings under self-administration at the responsible district court in Charlottenburg. The court complied with this and ordered temporary self-administration. Due to the court order, the management of the company remains in the hands of the management, which is now supported by the experienced restructuring lawyer Andreas Budnik from the nationwide law firm AndresPartner. The company is also supported in its project by the court-appointed provisional administrator, lawyer Friedemann Schade. Its job is to monitor the company throughout the entire process and protect the interests of all creditors.
“The crises of the past few years have not left Shoepassion GmbH unscathed. The massive drop in sales as a result of the corona pandemic in 2020 and 2021 placed a heavy burden on our liquidity,” says managing director Björn Henning. As a result, the shift in fashion towards home offices has become established, which has put increasing pressure on the company's core product - the high-quality, classic leather shoe "Made in EU".
When the retail arm of Shoepassion GmbH no longer returned to pre-Corona sales levels after the pandemic, the company quickly found itself in financial distress due to liabilities arising during the Corona crisis. Stationary sales are down more than 30 percent compared to 2019 - but costs have remained largely constant due to fixed contracts. While 2021 still gave rise to hopes of normalization with a positive annual net profit, in 2022 the war in Ukraine, which resulted in a historically low consumer climate, made it clear that a profound realignment of the company would be necessary.
Due to this economic development, Shoepassion GmbH had worked with banks and shareholders over the past few months on a solution, but ultimately did not receive the support of all the necessary parties. “Of course we expected significantly more from 2022, but in the end, despite all the support from shareholders and banks, it was not possible to switch to a new, sustainable direction for the company quickly enough,” explains Björn Henning. Shoepassion GmbH now intends to adapt to the changed market conditions as part of an insolvency plan procedure and to reposition itself for the future.
During the pandemic, Shoepassion modernized its brand identity and expanded its offering into women's and casual shoes with the new brands Henry Stevens and N91. The growth in these areas gave hope that the company would be able to operate profitably again in the future. Against this background, Björn Henning is optimistic: “We are convinced that we and our concept have a place on the market.”
Shoepassion GmbH employs 67 people who have been informed about the current status and how to proceed. Instead of their wages and salaries, they receive insolvency money from the employment agency for three months.
About Shoepassion
The omnichannel player Shoepassion was founded in 2010. The Berlin company is active worldwide with its online shops and also has its own stores in Germany and Austria. The Shoepassion shoe brand became the Shoepassion boutique platform. In addition to its three own brands N91, Henry Stevens and Heinrich Dinkelacker, the company now also offers shoes and accessories from selected partner brands.
