The well-known chain of clothing stores Peek & Cloopenburg has filed for bankruptcy. The network overinvested, investing in the creation of an online store. Now he announces a recovery plan.
On Friday, Peek & Cloppenburg KG Düsseldorf (P&C) filed for reorganization with the District Court of Düsseldorf. A popular clothing retailer went bankrupt after investing in an online store that failed to deliver the expected return.
Peek & Cloppenburg went bankrupt
Since the outbreak of the coronavirus pandemic, Peek & Cloppenburg has invested in the development of an online sales platform. This was to help preserve the market during the economic paralysis caused by lockdowns and the periodic closure of stationary stores in shopping centers.
However, it turned out that the German seller miscalculated. The online platform could not stand the competition from the largest European e-commerce giant Zalando. In addition, after the lifting of the restrictions caused by the pandemic, the online clothing retail market is slowly shrinking.
Stores will remain open
According to current plans, the closure of branches is not planned. P&C managing director Thomas Freud told Wirtschaftswoche that the company, which has about 6,800 employees, is likely to do without layoffs in its branches.
“We anticipate that we will be able to complete the bankruptcy plan by the end of the year at the latest,” he said, adding that the company wants to reach an agreement with creditors so that it can continue its operations, focusing almost exclusively on selling clothes in brick-and-mortar stores.
Peek & Cloppenburg was founded in 1901. It was founded by Heinrich Anton Cloppenburg and Johann Theodor Pick.
Source: Wprost
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