German fashion chain Closed files for bankruptcy

German premium fashion chain Closed, with stores in six European countries, has filed for bankruptcy. The retailer can no longer pay wages due to financial difficulties.

Seeking investor

Banks have reportedly blocked the retailer’s credit lines out of concern for the company’s high debt load. They are demanding a restructuring report. The wages of the nearly 350 employees would have gone at least partially unpaid, Manager Magazin reports. Stores and web shop will remain open.

A receiver has already begun the search for investors, and initial talks are reportedly promising: “Closed is a strong brand with a clear profile. I am confident that an investor can be found and that the company will remain a Hamburg brand.”

In fiscal year 2022/23 Closed still achieved sales of more than 120 million euros, and a net annual profit of just over half a million euros. After that, the problems are said to have begun. The chain has 26 stores in Germany and about a dozen in other European countries, including Austria, Switzerland, Spain, the Netherlands and Belgium. In addition, the brand sells its products online and through wholesale.