24 branches in Austria are affected. The reason is the lockdown that has been in place since mid-December.
The fashion chain Adler is insolvent. The German company, which also has 24 branches in Austria, filed for bankruptcy at the Aschaffenburg district court (German state Bavaria) on Sunday. Specifically, the company is to be restructured in self-administration according to an insolvency plan, the fashion chain Adler said in a mandatory announcement on Sunday evening.
It also said that business operations should be continued in full under the supervision of a trustee. The trigger for the bankruptcy petition was cited as the “considerable loss of sales” caused by the closings of almost all sales branches since mid-December. Adler claims to have 3,350 employees and operates 171 fashion stores – 142 of them in Germany. In 2019 the company had sales of 495.4 million euros and a result of 70.3 million euros.
“The renewed Corona-related closure of almost all locations has unfortunately left us no other choice. We will do everything to maintain business operations and to restructure Adler as quickly as possible and lead it back into a positive future,” commented company boss Thomas Freude in one Eagle broadcast.
The example of Adler shows that in the textile retail sector even a company that reported a “record net liquidity” of 70.1 million euros at the end of 2019 could find itself in an existential crisis within just under twelve months. After the first lockdown by October 2020, however, a noticeable recovery trend was noted.
