As a result of fresh closure of 169 of the 171 company stores until at least the end of January, Germany’s Adler Modemärkte AG recently resolved to file an application for the opening of insolvency proceedings in self-administration. Despite intensive efforts, the company was unable to close the liquidity gap caused by the pandemic-related drop in sales.
In the first half of 2020, ADLER had still managed to cushion the first COVID-19-related lockdown, thanks to a then solid balance sheet structure and the securing of comprehensive financing commitments, it said in a press release.
The aim now is to financially restructure the company by means of an insolvency plan. In the case of self-administration, the business operations are continued in their entirety under the supervision of a preliminary custodian.
The management board continues to have the power of administration and disposition.
“The renewed Corona-related closure of almost all stores has unfortunately left us with no other choice. We will do everything in our power to maintain the business operations and to restructure ADLER as quickly as possible and lead it into a positive future once again”, said company chief executive officer CEO, Thomas Freude.
Adler Mode GmbH, Adler Orange GmbH & Co. KG and Adler Orange Verwaltung GmbH, each wholly-owned subsidiaries of Adler Modemärkte AG, today also resolved to file an application for the opening of insolvency proceedings in self-administration at a German court.