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Hamburg's Premium Denim Brand, Closed, Seeks Restructuring and Investment
The Hamburg-based premium denim brand, Closed, has filed for insolvency due to excessive debt and associated financing costs. Despite this financial challenge, the company's business operations, including its e-commerce platform and retail stores, are expected to continue unchanged.
The insolvency application was made to the Hamburg Regional Court, and Stefan Denkhaus from the law firm BRL has been appointed as the provisional insolvency administrator. Closed remains particularly known for its denim products and has been a fixture in the fashion industry for nearly 70 years.
To navigate through this financial hurdle, Closed has initiated a search for investors. Initial talks with potential investors have been described as promising. The management of Closed is optimistic about finding an investor due to the brand's strong profile and operational profitability. The focus is on maintaining the brand's identity and operations in Hamburg.
Pre-financing of insolvency benefits for the approximately 400 employees has been initiated to ensure continuous salary payments. Lothar Hiese has been appointed as the new chief financial officer to oversee the financial restructuring.
Closed's retail business, including 26 stores in Germany and other European locations, as well as its e-commerce platform, remain operational. The company aims to continue its existence with its current locations in Germany and Europe. Business operations will continue in all areas: online, wholesale, and stationary retail.
While specific names of potential investors have not been disclosed, Denkhaus wants to keep Fashion chain Closed as a Hamburg company. The insolvency administrator is optimistic about finding an investor for the Fashion chain, expressing confidence in the brand's potential.
As part of the restructuring efforts, Closed has also appointed Gordon Giers and Til Nadler to help restructure the company. The clearance sale has started, and all German stores of Fashion chain Closed have closed. However, the company remains committed to its mission and is working diligently to secure a bright future.
The management of Closed, a Hamburg-based denim brand known for its strong profile in fashion-and-beauty, has initiated a search for investors in an effort to navigate through financial difficulties. The business operations, including lifestyle elements like the e-commerce platform and retail stores, are expected to continue unchanged during this process.
Stefan Denkhaus, the provisional insolvency administrator appointed by the Hamburg Regional Court, has expressed optimism about finding an investor for the fashion business, with an emphasis on maintaining the brand's identity and operations in Hamburg, thereby ensuring its continued presence in the business sector.
