Fashion

Protective shield for Peek & Cloppenburg KG, Düsseldorf


The department store chain Peek & Cloppenburg KG in Germany is adapting itself to changing market conditions as well as other external and internal factors. In order to accelerate the restructuring of the company caused by the crisis, the management filed a request for protective shield proceedings with the competent district court in Düsseldorf. All 67 Group stores in Germany as well as the online store will remain open without restrictions.

The Peek & Cloppenburg Group (Düsseldorf), with headquarters in Düsseldorf and Vienna, has established itself as one of the largest multi-brand fashion retailers in Europe.

Accessible through six online stores and centrally located in over 160 retail stores, P&C is an omnichannel purveyor offering customers a wide selection of fashion trends curated from luxury brands, trendy young brands and innovative exclusive brands.

Peek & Cloppenburg, Dusseldorf

Peek & Cloppenburg, Dusseldorf

Today, about 16,000 employees work for the group in 16 countries. In addition to P&C, the group also includes menswear suppliers Anson’s and Magasin du Nord.

Peek & Cloppenburg KG, Düsseldorf initiated the shield protection procedure to adapt to the changed market conditions in Germany and reposition itself for the future.

A protective shield is a court-ordered restructuring procedure whereby the company outlines the necessary measures to restructure and reorganize in a targeted manner within its responsibility and implements them in the short term. According to the current court order, management of the company remains in the hands of the board of directors during the restructuring. It remains authorized to give instructions and take action.

Crisis has changed customer behavior
In 2020 and 2021, the COVID 19 pandemic caused a severe drop in sales at Peek & Cloppenburg KG, Düsseldorf, putting great pressure on the company’s liquidity. “The collision hit us hard and caused millions of dollars in losses,” said Steffen Schüller, managing director of Peek & Cloppenburg KG, Düsseldorf.

Steffen Schüller

Steffen Schüller

In addition, consumer behavior continues to be constrained by the ongoing Ukraine war as of February 2022. Supply bottlenecks, energy, wages and sourcing costs increase, interest rates rise. Rising interest rates and a mild recession further clouded the economic situation of Peek & Cloppenburg KG, Düsseldorf at the end of last year. Mild winters also don’t provide any additional incentive to buy.

Online strategy does not bring expected results
To account for the shift in purchasing behavior due to the COVID 19 pandemic, Peek & Cloppenburg KG, Düsseldorf has significantly expanded its online operations since 2021. In the process, the investments are worth it. Counting on personnel, physical resources and marketing up to a triple digit million was made. Since cost developments and reluctance to purchase can also be observed here across the industry, a company’s online strategy must be revisited and adjusted to suit certain circumstances. .

“We’re not changing our multi-brand omnichannel strategy. Right now, our focus is clearly on our core business in brick-and-mortar retail, and thus across our stores. The online sector continues to be an important part of our business model, but here Thomas Freude, managing director of Peek & Cloppenburg KG, Düsseldorf comments: “We will act with caution. than previous years.

Thomas Freude

Thomas Freude

Rapid restructuring is planned under the protective shield
Peek & Cloppenburg KG, Düsseldorf will perform the necessary restructuring in line with the crisis as part of the protective shield procedure.

“The shielding process is an effective tool for restructuring companies. Over the coming weeks we will be negotiating with all the major parties involved in the process and on that basis, I will move forward with the restructuring plan Peek & Cloppenburg KG, Düsseldorf,” explains Dirk Andres, experienced attorney and restructuring expert at law firm Andres Partner, explaining the upcoming steps.

It is clear that there is a need to significantly reduce the number of administrative staff, including management levels. Details will be discussed in the coming weeks and discussions with those involved. Given the current situation, there will be no mandatory redundancy at the 67 stores under the protective shield.

Business will continue
Peek & Cloppenburg KG, Düsseldorf’s business and sales will continue without restriction during the protective shield proceedings.

Under current plans, there are no plans to close stores, but measures to make the necessary adjustments to the profitability and general condition of individual locations are being considered. “Our stores will remain open. Even during the protective shield period, we will continue to offer our customers a wide range of products at all of our locations, as previously announced. Peek & Cloppenburg KG, Düsseldorf’s online store is, of course, still part of the business model and still accessible,” added group chief executive Thomas Freude.

Peek & Cloppenburg, Dusseldorf

Peek & Cloppenburg, Dusseldorf

The recruitment agency will pay the salary
About 6,800 employees of Peek & Cloppenburg KG, Düsseldorf, including 800 employees at the headquarters and 6,000 employees at 67 stores, who will have their salaries taken over by the recruitment agency over the next three months, have been informed. Report today about the current situation and the next procedure.

For Peek & Cloppenburg Retail Buy GmbH & Co. KG, an application for protection proceedings has also been filed. The group’s other companies in Germany and abroad, as well as its sister company Peek & Cloppenburg in Austria, are not affected by the protective shield. They will continue their business activities without restriction. This applies especially to Anson fashion stores in Germany.

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