Germany's largest fashion retailer Peek&Cloppenburg KG, headquartered in Düsseldorf, has gone bankrupt.

As Fenix-magazin.de had already reported earlier, 6,800 employees fear for their jobs. According to German media reports, the insolvency filing for the German company was submitted to the District Court in Düsseldorf at 12 noon. The law firm AndresPartners from Düsseldorf was reportedly appointed as insolvency administrator.

Thomas Freude from the management of Peek&Cloppenburg said that the fashion retail business is in crisis.

– This applies to Peek & Cloppenburg KG, Düsseldorf, as well as to the entire industry. The luxury segment and the discount sector are still functioning, but business is collapsing. This even applies to online business, with which hardly any clothing retailer makes money, including P&C. It is clear to us that we must quickly take countermeasures and get the company back on the right track, said Freude.

He emphasized that they will reorganize Peek & Cloppenburg KG, Düsseldorf as part of the so-called protective shield proceedings.

– This morning we submitted the insolvency application to the district court in Düsseldorf, which the court has already approved. Together with restructuring expert Dirk Andres from the law firm AndresPartner and under the supervision of the provisional administrator Horst Piepenburg, we will quickly and consistently implement the decisions necessary to restructure our company, Thomas Freude said on Friday.

The protective shield proceedings apply to Peek & Cloppenburg KG, Düsseldorf, which owns the company headquarters and 67 P&C stores with a total of around 6,800 employees, as well as the procurement company, Peek & Cloppenburg Retail Buying GmbH & Co. KG. International business is organized in separate companies and is not affected by the protective shield proceedings.

Source: fenix-magazin.de