05.07.2021, 16:10 | of Editors Chip / DPA
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After filing for bankruptcy in January, the Adler Fashion Company was back on track. As it has now become known, about 500 jobs will have to be cut and 40 branches in Germany will have to be closed. You can find the details of the plans here.
Bankrupt textile chain Adler Modmarkte expects 500 jobs to be cut during the planned renovation. As the company announced in Habeck on Friday, the bankruptcy plan submitted to the Aschaffenburg district court provides for business to continue with more than 100 German and 29 foreign branches in Austria, Luxembourg and Switzerland.
“With the planned restructuring, at least 2,600 of the total 3100 jobs in the group could be preserved,” the statement said. CEO Thomas Freud and associates remain in position. With this, 40 of the total 142 branches in Germany are likely to be closed. The bankruptcy plan provides for the continuation of “more than 100” markets.
Adler: Bad news for shareholders, too
The hedge group of the highly indebted company wants to become Zeitfraht, which has signed an investor agreement and wants to remove Adler from the stock exchange. This is not good news for past shareholders, as their papers will be worthless.
The district court had formally initiated insolvency proceedings a day earlier. Creditors must agree to a bankruptcy plan at the end of July, according to Adler, with the bankruptcy proceedings ending again at the end of August 2021.