"Deindustrialization of the country": one of the oldest brands goes bankrupt in Germany

Another German company is filing for bankruptcy. This time, a well-known clothing brand is facing financial difficulties. The number of bankruptcies in Germany has been steadily increasing for several years. Informs about this Gazeta.Pl .

The German clothing brand Heimatliebe is struggling to cope with the difficult situation in the fashion industry. The court in Dortmund declared its owner, Store Concept GmbH & Co. KG, bankrupt. This is shocking news for about 400 stores in Germany that sold clothes of this brand. Bild reports that the company will probably have to cover the costs of lost goods, but more importantly, they may lose loyal customers.

The German brand stood out in the market. These clothes were not the cheapest, but also not the most expensive, that is, they belonged to the average price category. However, this originality could cause the collapse of the brand. German media reported that the company went bankrupt due to falling sales and increasingly lower margins caused by the pandemic and changing consumer behavior. The high cost of labor, energy prices and competition from online stores have also had a negative impact on the company.

The Heimatliebe brand is not alone. According to the Federal Statistical Office, 12,000 bankruptcy applications were filed with local courts in the first six months of the year. This is 12.2% more than in the same period last year. The claims of creditors arising from the filing of bankruptcy applications for companies are estimated at 28.2 billion euros. There are 34.6 bankruptcies per 10,000 companies. The largest number of bankruptcies was recorded in the field of transport and warehousing (64.5 cases per 10,000 companies), hotel business (52.7 cases) and construction (52.3 cases).