As of: March 27, 2024, 11:43 a.m
By: Amy Walker
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The insolvency of a well-known fashion company is progressing.
It is now known that at least three branches will have to close.
Hanover - The insolvency of the fashion company Wormland is progressing: On March 25th, the insolvency proceedings under self-administration of the company, which specializes in men's fashion, were opened in Hanover.
The insolvency administrator Torsten Gutmann from the Pluta law firm was appointed by the court to help the chain stores become profitable again.
As the trade magazine
Textilwirtschaft
reports, the decision has now been made to close at least three branches completely.
Wormland operates a total of twelve fashion houses in ten German cities.
Three Wormland branches have to close
The following cities have had a Wormland branch to date:
Berlin
Bremen
Bochum
Dortmund
Frankfurt am Main
Hamburg
Hanover
Munich
Nuremberg
Oberhausen
According to
Textilwirtschaft,
the branches in Nuremberg, Frankfurt am Main and Bremen/Sögestrasse are now to be closed.
The affected employees have been informed.
“Our stated goal was to maintain all locations.
Unfortunately, we were unable to convince the landlords of these locations to find an economically viable solution.
Wormland has a decades-long history with Frankfurt, Nuremberg and the Bremen branch on Sögestraße; great people work in these branches.
Our entire sympathy goes out to you,” the trade magazine quotes Wormland managing directors Tim Kälberer, Peter Wolff and Bernd Sölter.
The fashion company Wormland is insolvent.
© Verena Scholze/IMAGO
The other eight locations should be retained.
An insolvency plan should be in place by the end of May 2024, and operations will continue as normal until then.
Wormland employs a total of 400 people.
Wormland was founded in Hanover in 1935
According to the company, the reason for the insolvency proceedings is high inflation and the resulting weaker purchasing power of consumers.
The areas of rent, energy, logistics and personnel are particularly affected by inflation-related cost increases.
Although the sales achieved in 2023 were slightly higher than the previous year despite the decline in customer frequency, they would not have been able to offset the costs.
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Theo Wormland founded the company in Hanover in 1935 and was considered an “avant-gardist in men’s fashion”.
Over the years, more and more branches were added.