PLUTA to advise the management board on Basler Fashion Group restructuring process
The Basler Fashion Group filed for debtor-in-possession proceedings with the Local Court of Aschaffenburg yesterday. This step was inevitable due to the fact that the company needs to undergo restructuring to become fit for the future. Debtor-in-possession proceedings ensure that the company has a reliable basis for planning and also allow creditors’ interests to be taken into account. The company has already prepared a comprehensive restructuring concept and is going to implement important procedural and structural measures in the coming weeks, in particular in the supply chain. During the debtor-in-possession proceedings, the management team will remain in office and will be supported by experienced restructuring experts from the restructuring company PLUTA. Prof Dr Lucas Flöther from the law firm Flöther & Wissing has been appointed as an expert for the proceedings.
Business operations will continue without any restrictions and all the deliveries to trading partners will be made on time. The customers can continue shopping in the company’s stores and its trading partners’ shops. Most recently, pre-order developments for the 2017 autumn/winter outdoor collection have been very positive; this segment is intended to be further expanded in future. The company also sees opportunities in the international market, since business in North America and Great Britain is good. At present, the company is preparing the collection for the 2018 spring/summer trade fair cycle and will be able to sell this as planned at CPD in Düsseldorf and at the usual regional trade fairs.
“We will implement the restructuring measures systematically and adopt a cost-conscious way of working. The measures planned will allow us to align the company with the challenges of the future. Our aim is to ensure that, following the debtor-in-possession proceedings, the Basler Group will be stronger than before,“ said the board officers Rolf Boje (CEO), Dr Marc Barrantes (CFO) and Jan Hilger (COO).
The manufacturer of ladies’ wear, headquartered in Goldbach, Germany, employs more than 1,100 people worldwide and is represented by 1,900 points of sale in over 60 countries. The company operates more than 40 shops and more than 80 shop-in-shops as well as 13 outlets worldwide. Apart from Basler Fashion, the Group also includes ST.EMILE GmbH, which is also going through a restructuring process as a debtor in possession.
Information on the proceedings
Debtor-in-possession proceedings are in-court restructuring proceedings to rescue and rehabilitate financially distressed companies. The company is allowed to manage the restructuring process itself, supervised by an insolvency monitor and generally supported by restructuring experts with relevant experience in this field. The preliminary proceedings, that last between 2 and 3 months, are followed by the main proceedings, in the course of which the creditors can file their claims.
BASLER was founded in Berlin as a family business in 1936 and developed into an international fashion label over a period of roughly 80 years. The supplier of ladies’ wear, headquartered in Goldbach, Germany, employs more than 1,100 people and is represented by 1,900 points of sale in over 60 countries. The company’s motto is: feminine elegance and perfect fit meet the highest quality standards of craftsmanship. The collections offered by BASLER are not just created for one single season, but are designed to be the favourite clothes of self-confident women who have fun re-interpreting timeless fashion over and over again.