Retail and Distribution

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.