Many fashion chains had to do without a lot of customers during the Corona period, which often led to financial difficulties. With Orsay, one of the industry giants is now forced to close a number of branches in Germany.
After Esprit, Galeria Karstadt Kaufhof and Sinn, the next fashion giant in this country has to go through a protective shield procedure: Orsay CEO Sascha Bopp confirmed at the end of 2021 that the procedure had been opened. Due to the threat of insolvency in the first quarter of next year, the group felt compelled to take this step.
Shortly thereafter, the management then informed the employees in the branches and the head office about the step. In Germany there are a total of 197 of the 708 branches worldwide, in which about 1,200 employees work. Overall, around 40 percent of the fashion chain’s sales come from the German GmbH.
As Bopp has now confirmed to Textilwirtschaft, they want to close at least 79 branches in Germany. As a result, up to 212 employees would lose their jobs.
Orsay in crisis: the protective shield procedure is intended to save the fashion chain from bankruptcy
The main reasons given by Orsay for the impending insolvency are, unsurprisingly, the consequences of the corona lockdown and the federal emergency brake. There have also recently been price increases for logistics and material.
“We are convinced that the protective shield procedure will enable us to master the unforeseeable consequences of the corona pandemic and to strengthen the company for the future,” explained CEO Bopp. The group has apparently already received support from several suppliers.
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