Our Case Studies

THEO WORMLAND GmbH is an established men’s fashion retailer with multiple stores in Germany. The company is known for its wide range of brands and exceptional shop architecture. Excellent customer service and competent advice are central to its approach. Like many fashion retailers in Germany, WORMLAND also felt the effects of persistently high inflation, which reduced customers’ purchasing power. In addition, the company was unable to fully compensate for inflation-related cost increases, particularly for rent, energy, logistics and staff. Faced with these economic challenges, WORMLAND entered into self-administration restructuring proceedings. Attorney Mr Torsten Gutmann from PLUTA oversaw the proceedings as insolvency monitor in the interests of creditors.

Having filed its application in early 2024, WORMLAND was then supported by a restructuring team from PLUTA Rechtsanwalts GmbH. Insolvency monitor Mr Torsten Gutmann oversaw the self-administration proceedings and represented the interests of the creditors. During the initial phase, the focus lay on stabilising the business and keeping the stores open. Management implemented targeted restructuring measures. In parallel to this, detailed discussions were held with potential investors with a view to finding a solution for the future of the company. The adjustment of leases was a decisive success factor that led to a considerable reduction in running costs and improved the company’s liquidity. Family business Lengermann & Trieschmann (L&T) based in Osnabrück came on board at WORMLAND as a strategic investor. L&T operates one of Germany’s largest owner-managed lifestyle and experience centres in the retail and leisure sector.

During the protective shield proceedings, the company was able to restructure itself under court supervision. The creditors approved the insolvency plan by majority vote at the discussion and voting meeting. The solution was of benefit to them, as it significantly increased the recovery rate on their claims. The takeover safeguarded around 300 jobs across Germany. WORMLAND is now on a stable footing for the future and can continue to offer its fashion concept.

A last-minute solution was able to be found during the self-administration proceedings of the well-known G-fashion Group. Despite the difficult conditions caused by the corona pandemic, an investor was found. While the investor process was ongoing, the textile retailer had to temporarily close its branches due to the lockdown. The contracts for the transferred restructuring, which had already gone through final negotiations, could therefore no longer be concluded as planned. While the management was already preparing to shut down operations and the branches were carrying out clearance sales after being partially opened, an agreement was finally reached with an investment company. Numerous employees have therefore kept their jobs. The PLUTA experts acted as custodians for three companies in the group and supported the proceedings in the interests of the creditors.

Bürgerbräu Wolnzach AG from Bavaria in Germany had to file for insolvency due to liquidity problems. A PLUTA restructuring expert acted as insolvency administrator. He kept the brewery’s business operations going and held negotiations with several interested buyers. Although the small brewery ceased brewing beer, the insolvency administrator was able to continue selling beer as the company’s warehouses were well stocked. Finally, it was possible to sell the brewery. The buyer originates from the Upper Bavaria region but has been living in the US for several years, where he successfully operates two breweries. Having found a buyer with roots in the region, the PLUTA team achieved the best solution for the brewery and the creditors. This also means that this region, home to the German Hop Museum, will still have a brewery in future.

The family company’s success story began in the eighties, when KARMEZ Dönerfabrik brought the first industrially manufactured doner kebab skewer to the market. But the company had to file for insolvency. The PLUTA experts were able to keep the longestablished company going and find an investor. This means that the high-quality doner kebab skewers will still be produced in Frankfurt in the future. By selling the business, PLUTA has achieved the best possible result for the company, the staff and the creditors. More than 60 employees were taken over by the buyer.

The management of Münsterländische Margarine-Werke J. Lülf GmbH, a supplier of margarine and fat products as well as milk drinks, conducted debtor-in-possession insolvency proceedings. Under such an arrangement, management remains in charge and guides the company through the crisis itself. A PLUTA expert acted as insolvency monitor, supervising the restructuring process in the interests of the creditors. The insolvency was mainly the result of the adverse market situation and the decline in demand in the lowermargin margarine segment. Business activities were maintained without restriction during the proceedings, and an investor was sought. The successful bidder presented an acquisition concept that would retain the most jobs. A total of 49 jobs were saved as a result.

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.

Zalis was asked to advise SaarLB, a German bank, on a potential transaction to convert into equity the debt issued to a private equity fund and secured by a pledge on a shopping centre in the Paris region, giving it a controlling stake in the shopping centre.

With a an occupancy rate that had dropped to 76% with 12 out of 50 units vacant and several more under notice, a reduced footfall and a damaged reputation the value of the shopping centre had plummeted. After several failed attempts to sell the asset the owner had entered into a voluntary court bankruptcy procedure in order to negotiate an exit from the property under which the lender would take possession of the asset. The bank’s debt had by now an extremely high risk profile and the loan was transferred to the bank’s Special Situations group who asked Zalis to conduct a commercial study on the current situation of the shopping centre and to draw up a potential turnaround plan.

The Zalis study concluded that the shopping centre had sufficient advantages and potential (reasonable catchment area, good motorway access, the right flagship tenant, etc.) to succeed. Zalis proposed a viable turnaround plan to revitalise the shopping centre, improve its performance and increase its value, but this plan would have taken two years to bear full fruit and it depended on a significant level of change (rent reductions, more appropriate tenants, etc.). As a result the bank then decided to seek a buyer for its debt rather than exercise its option to take ownership of the property.

Farber accomplished the liquidation of Movie Gallery’s video and game rental business that operated approximately 181 retail stores across Canada, with more than 1,200 employees.

Farber acted as Trustee in a Proposal that was filed under the Bankruptcy & Insolvency Act (“BIA Proposal”) which was run in conjunction with Chapter 11 proceedings in the US. Bondholders in the US were contemplating “walking away” from Canada as they perceived immaterial value. However, the Canadian liquidation was executed exceedingly well and resulted in the Canadian creditors receiving 100 cents on the dollar.

As a result, he US parent company received full repayment of its secured loans and a repatriation of equity.

Minute Muffler operated as franchisor and buying group to a chain of 91 Minute Muffler franchisees across Canada, specializing in “while you wait” automotive services for cars and light trucks.

Farber was the Court Authorized Sale Agent, working in tandem with the Receiver to maximize value for the secured lenders. There were serious concerns about the Receiver’s ability to keep the franchise network intact.

Farber successfully managed an accelerated sales process to maximize the value of the franchise network before it became severely compromised.

CMT designed, produced and marketed trendy apparel styles for “fashion forward” men and women under the retail banners: Urban Behavior, Costa Blanca and Costa Blanca X.

They operated 116 leased store /our-firms throughout Canada and had approximately 1,682 employees.

First under a BIA Proposal and then under CCAA, with Farber acting as Proposal Trustee and Monitor, CMT downsized the chain around its profitable stores and brands; self-liquidated inventory at certain /our-firms; and ultimately, Farber sold the assets as a going concern in two separate transactions.