The corona crisis hit the retail sector particularly hard. Shops in Germany had to close for weeks, and income was completely lost. The consequences can now also be seen in the popular fashion chain Pimkie. To protect itself from bankruptcy, the company opened protective shield proceedings.
Pimkie before bankruptcy: Only protective shield proceedings can help
The French company Framode GmbH employs around 75 Pimkie branches and 350 employees in Germany alone. The concept: Cool fashion for young women between the ages of 16 and 22 – and at low prices with good quality. And so far, Pimkie has actually become a serious competitor for H&M, Zara and Co., who has made it market share for them. But the lockdown has left its mark. In order to save Pimkie from bankruptcy in Germany, the company has now opened protective sham proceedings at the Offenburg district court.
The protective shield proceedings mean these consequences
First and foremost, the measure ensures that the company does not slide into insolvency. Salaries can still be paid and employees do not have to worry about their jobs for the time being. And nothing will change for customers for the time being. However, the management is committed to cost-cutting measures and has to bring an external insolvency administrator on board. In the course of the process, the company is usually restructured. These can provide for further expansion of online trading, merging departments, but also closing unprofitable locations.