Companies

German shoe wholesaler Pölking ends insolvency proceedings

Jul 22, 2024 Germany

After 14 months of self-administration, the German shoe wholesaler Pölking has emerged from insolvency and has repositioned itself to adapt to new market conditions

Creditors approved the submitted insolvency plan in early May 2024 and the Local Court of Osnabrück has terminated the restructuring proceedings effective from the 31^st of May 2024.

“Pölking has stabilised its business performance, taken the necessary restructuring measures and drawn up an insolvency plan during the proceedings. All parties to the proceedings have cooperated constructively to enable this solution. I am particularly pleased that we have therefore been able to save the jobs”, commented insolvency monitor Stefan Meyer.

Managing director Angelika Pölking, who will remain in the role, pointed out that “almost all employees are still with the company. And we have been able to fill a number of new positions.” Around 80 people currently work for Pölking. Tim Piepmeyer, managing director and shareholder of Planet Footwear GmbH, will act as general agent for Pölking, succeeding Joachim Walterscheid, who has been acting as general agent for the debtor in possession.

Founded in 1894, the Osnabrück-based company filed for debtor-in-possession proceedings in March 2023 to restructure and adapt to changing market conditions. This process allowed the company to remain operational while insolvent and regain competitiveness.

Future

Over the past 14 months, the company has worked to reposition itself. As previously announced, Pölking has acquired four stores from its sister company Lemax Shoe Fashion (whose insolvency proceedings are still ongoing) and has also taken over the online shops previously operated by Lemax.

To move forward, the company has developed a new sales concept, which includes a clear reporting system that is transparent for all involved, and is also investing in B2B e-commerce plans in response to changes in the market

“As a wholesaler, Pölking is a popular partner for retailers, who are also adapting to the new market conditions. For example, they can request smaller quantities from Pölking that are not available elsewhere in the market. Pölking has a competitive advantage here given the large volumes it buys and can also use this to its benefit going forward,” explained Walterscheid.

Image Credits: poelking-schuhe.de

Germany Companies Footwear Insolvency Restructuring