One of the most popular fashion chains has announced its final withdrawal from the German market. After being in crisis for some time, Orsay will soon be closing all branches in this country.
After Esprit, Galeria Karstadt Kaufhof and Sinn, the next fashion giant in this country had 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 the group has now confirmed to the textile industry, the final end of Orsay in Germany is sealed. All branches in Germany will be closed by the end of June. As a result, all employees will lose their jobs.
Orsay in crisis: All leases will be terminated on July 1st
It had already been announced in March that Orsay would terminate all leases at its locations in Germany as of July 1st. “The continuation of the stationary shops in Germany is still open today,” the company said at the time.
Due to the bankruptcy of the group, a new operator for the fashion chain is still being sought for a few months. Apparently, however, they were not successful here.
The main reasons given by Orsay for the 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.
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