Branch clearing: Well-known fashion chain closes every second location in Germany

The corona pandemic relentlessly exposes the weaknesses of many stationary retailers.

Now the next fashion chain has got it. 

Munich - The French fashion discounter

Pimkie

wants to close almost half of the total of 75 branches in Germany and keep more than 40 of them, according to the

textile industry

and in a press release on the plans.

Around 150 employees have to leave, reports the industry journal.

The creditors' meeting of the German operating company

Framode

"unanimously"

waved

the radical

cure through

for the retail chain, it said.

In this way, the company wants to save more than 40 of the 75 branches in Germany.

"Without the sometimes painful adjustments to site rents, the continued existence of

Pimkie

in Germany would undoubtedly have been in question," quoted the specialist journal

Pimkie

managing director Patrick van der Linden.

Authorized signatory and Country Sales Manager Patrik Mesa Raya adds: “As with many companies in our industry, the corona pandemic has

hit Pimkie

all over Europe.

The restructuring now enables us to remain present in Germany with over forty stores. "

The economic situation at

Pimkie

has long been considered tense.

At the end of September, the German operating company

Framode

, based in

Kehl,

Baden,

applied for insolvency proceedings

at the

Offenburg

district court

.

Pimkie: Fashion discounter overslept online business

Pimkie

had long underestimated the booming online business.

During the

Corona

pandemic, the migration of predominantly young and female customers to online shops such as the Irish low-cost fashion chain

Primark

apparently accelerated further.

The company also suffered from pressure from large chains such as

Zara

and

H&M

.

Pimkie

wants that

Use protective shield proceedings to further expand your digital presence and to improve the range in stationary fashion stores.

According to its own information,

Pimkie

has so far operated 75 branches nationwide with 350 permanent employees.

Three years ago there were twice as many stores with around 650 employees.

In 2019 the chain had a turnover of 50 million euros.

Just over a week ago, the clothing chain

Adler Modemärkte also

filed for bankruptcy.

The chain plans to close 171 branches nationwide.

Other large fashion retailers like

Hallhuber also

had to go to the local court.