Peek & Cloppenburg is applying for bankruptcy
Peek & Cloppenburg is a German chain of stores with clothing of famous brands in its assortment.
There is a long tradition and rich, international experience. Well, its functioning was inaugurated over 100 years ago. Throughout this time, the company’s branches were established in 15 countries. There are a total of 140 stores under her banner.
The experience gained did not save the company from financial problems. At the end of last week, representatives of the company announced that one of their two German companies is insolvent. It was necessary to submit an application for the initiation of a protective shield procedure. Thanks to this, the company will get time for calm talks with creditors and conducting restructuring proceedings.
The reasons for the insolvency of Peek & Cloppenburg see the problems in piling up problems. The losses began to be recorded with the explosion of the coronaviru pandemic in 2020. In addition, they were deepened by the outbreak of war in Ukraine in 2022. Both of these events translated into conducting business and changed consumer habits. It seemed that strengthening e-commerce would be a prescription. And indeed it worked for some time. Currently, however, the popularity of electronic trade has dropped. This forces entrepreneurs to revise planned activities. This is visible in the technology industry and among e-commerce concerns (Zaland). On a massive scale, employment restructuring is carried out. Representatives of Peek & Cloppenburg also confirm that they have overinvestped the development of online trade and announce that it will be necessary to reduce employment. However, it will not cover shop employees. It is to focus on the administrative and managing staff. What’s more, financial problems are not to reflect on the functioning of the premises. As promised, they are still to work. This seems to be confirmed by information from Polish branches. Well, there are 9 stores in Poland, and the opening of the next one is scheduled for this month.