German fashion chain is insolvent: first branch will close this year

The retailer Sinn announced that the responsible district court in Hagen lifted the self-administration of Sinn GmbH on December 10th. The company then finds itself in traditional insolvency proceedings. As “FashionUnited” reports, this should have no impact on the ongoing renovation.

Lawyer Michael Mönig from the law firm Mönig Wirtschaftskanzlei was also appointed by the court as insolvency administrator. He will work closely with Sinn managing director Isabella Goebel and restructuring expert Jan Ockelmann. The reason for the move to traditional insolvency proceedings is “different opinions about the further strategic direction of the restructuring” within the management.

The fashion house filed for self-administration bankruptcy in August

More and more companies in Germany are having to go bankrupt. The fashion retailer Sinn also filed for insolvency proceedings under self-administration at the beginning of August. The reason was the overall economic situation as well as branch closures due to water damage and other structural reasons. This leads to a decline in sales while at the same time increasing costs for rent, energy and logistics.

Those responsible plan to submit the restructuring plan to the court before Christmas. Creditors are due to vote on it in January. It is already clear that the businesses in Rheine and Hildesheim will not be continued. Additional locations are still being negotiated.

The store in Hildesheim has its last day of sales on December 28th. Despite the planned closures, Sinn confirmed two new openings in mid-October. Sinn employs a total of around 1,500 people.