Matratzen Direct AG

Matratzen Direct AG

Matratzen direct AG, a mattress retailer with 558 employees and 256 discount stores,
applied for debtor-in-possession insolvency proceedings in early 2017. Under such an
arrangement, management remains in charge and guides the company through the crisis
itself. A PLUTA expert was appointed insolvency monitor to supervise the restructuring
process and protect the interests of the creditors. The company had fallen into financial
difficulties due to a dramatic decline in sales after it was required under competition law to
change its former name “Factory Outlet”, which had been very useful in its advertising. The
business was kept operating in full during the insolvency proceedings and an insolvency plan
in which creditors agreed to waive part of their claims was drawn up. In total, 176 stores and
410 jobs were saved. Insolvency proceedings were terminated in late 2017.