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DGAP-News: Adler Modemärkte AG / Key word(s): Miscellaneous
Traditional company in intensive restructuring negotiations
Government endangers around 3,200 jobs at ADLER
Haibach (near Aschaffenburg), 4. May 2021 - The restructuring of Adler Modemärkte AG, which has been successfull in the textile retail sector for more than 70 years, threatens to fail due to resistance from the government. Thus, the future of the approximately 3,200 employees is uncertain. The Executive Board urgently appeals to the responsible Federal Ministers Olaf Scholz and Peter Altmaier to give up their obstructive position and agree to support from the economic stabilisation fund (Wirtschaftsstabiliesierungsfonds) established by the federal government.
Although the company is in promising and advanced negotiations with several national and international investor groups, ADLER is in danger of running out of money due to the tightened lockdown conditions ordered by authorities as part of the so-called "federal emergency brake" (Bundes-Notbremse). As a result of the further tightening of the nationwide lockdown from 23 April 2021, ADLER requires additional financing of around €10 million. Accordingly, the company has been in close exchange with the responsible parties of the economic stabilisation fund for several weeks. However, the Federal Ministry of Finance and the Federal Ministry of Economics have been reluctant to commit to the confirmation of a loan for ADLER, despite insistent reminders of the resulting consequences for it's roughly 3,200 employees.
The group has been working on a restructuring in the course of insolvency proceedings in self-administration since 12 January 2021. In this context, by securing a mass loan and rigorous cost management, the company had succeeded in ensuring the financing of its operative business up to date, despite the extensive closure of almost all of its over 140 locations in Germany.
"It is dramatic that ADLER, despite the hopes for an ending lockdown due to dynamically rising vaccination figures and falling incidence rates, is now finding itself in an increasingly difficult situation. We are doing everything we can to secure a future for our roughly 3,200 employees. After all, ADLER was a financially healthy company before the pandemic and got into this crisis through no fault of its own." Thomas Freude, CEO of the company, commented.
The Company's aim is to reorganise in line with an insolvency plan developed as part of self-administered insolvency proceedings. The Company has commenced the necessary preparations and is intensively persuing an investor search, and it expects that this preliminary work will continue into June 2021. The Executive Board has appointed the attorney Dr Christian Gerloff, of Gerloff Liebler Rechtsanwälte - a prominent expert on restructuring and insolvency in the textile retail sector - to assist in this process as general representative. The Local Court has appointed the attorney Tobias Wahl, of Anchor Rechtsanwälte, to serve as preliminary trustee.
"It is utterly unbelievable to me that a traditional company like ADLER, with millions of loyal customers, has so far been denied any government support - neither via the economic stabilisation fund nor via the bridging assistance III (Überbrückungshilfe III). This means that around 3,200 employees are facing an uncertain future. The behaviour of the Federal Ministry of Finance and the Federal Ministry of Economic Affairs is diametrically opposed to the federal government's widely announced policy," adds lawyer Dr Christian Gerloff, general representative in the insolvency proceedings at ADLER.
Market-leading position and established business model with millions of loyal customers in the 55+ age group - solid basis for return to profitable growth
ADLER entered the pandemic with a healthy balance sheet and liquidity at a record high
Non-German companies not affected - Stores in Austria and Luxembourg trading again after lifting of local lockdowns; online trading surges by 36%
About Adler Modemärkte AG:
04.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Adler Modemärkte AG
Industriestraße Ost 1-7
+49 (0) 6021 633 0
+49 (0) 6021 633 1299
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:
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