In view of the difficult market situation, the fashion retailer Peek & Cloppenburg KG Düsseldorf (P&C) is seeking rescue in protective shield proceedings.

The management had submitted the application on Friday in order to accelerate the restructuring process that had already been initiated, the company said. All 67 stores in Germany as well as the online shop remained open without restriction. Previously, the "Wirtschaftswoche" had reported on it.

P&C intends to use the protective shield procedure to adapt to the changed market conditions in Germany and to reposition itself for the future. A closure of houses is not intended according to current plans, as the dealer emphasized.

The protective shield is a judicial restructuring procedure with which the company can develop the measures required for restructuring and reorganization on its own responsibility and implement them at short notice - but under the supervision of a court-appointed provisional expert.

Sales slump in pandemic

In 2020 and 2021, the Covid-19 pandemic led to a massive drop in sales at Peek & Cloppenburg Düsseldorf, the company reported. "The effects hit us hard and caused a three-digit million loss," said Steffen Schüller, Managing Director of the company since June 2022.

In addition, consumer behaviour among customers remains very cautious due to the Ukraine war, which has been ongoing since February 2022. Supply bottlenecks, increased costs, rising interest rates and the slight recession had further clouded the retailer's economic situation towards the end of last year.

An application for protective shield proceedings was also filed for Peek & Cloppenburg Retail Buying GmbH & Co. KG. Other companies of the Group in Austria and abroad as well as the sister company Peek & Cloppenburg in Austria are not affected by the protective shield. They continue their business activities without restriction. This also applies to ANSON'S fashion houses in Germany.