Companies

Former parent company of Reno also files for bankruptcy

May 15, 2023 Germany

Unable to overcome the challenges posed by the COVID-19 pandemic and the energy crisis, the German HR group filed for insolvency, following the path of its previously-owned footwear retailer, Reno

The footwear retail group has applied for insolvency proceedings for nine companies at the district court in Osnabrück. Though triggered by Reno's insolvency filing last March - as the HR Group continued to provide services to the company in the areas of IT and logistics – this decision was also due to the “still unresolved consequences of the Corona pandemic, the energy crisis and price increases, as well as by receivables arrears. The continuing reluctance of consumers to spend and the correspondingly lower demand from retail customers had a direct negative impact on sales and liquidity”.

According to courts' documents, the restructuring specialist Christian Gerloff was appointed as provisional insolvency administrator. Meanwhile, business operations at all companies will continue without restrictions and the wages of the approximately 750 employees of the group are secured until the end of June by insolvency benefits from the Federal Employment Agency. It should be noted as well that the company's foreign companies in Poland, the Czech Republic, Slovakia, Romania, and Hungary are not directly affected by the insolvency applications.

“Almost the entire shoe trade is currently in crisis. Nonetheless, the systems business and logistics are proven business models in which HR Group has the expertise that is recognized and valued in the market” says Christian Gerloff. “Our priority now is to stabilize ongoing business operations and explore all options that will enable a viable future solution for the company and its employees. This is also in the interest of satisfying creditors in the best possible way”.

Image Credits: noz.de

Germany Bankruptcy Companies Insolvency