Insolvency chaos: Large textile retailer closes branches and clears out!

Insolvency chaos: Large textile retailer closes branches and clears out!

The group of companiesThe fabrichas filed for bankruptcy. This was announced by the Nordhorn District Court, which opened insolvency proceedings on October 1, 2025. The dealer group includes a total of 37 branches and around 300 employees in this country. For economic reasons, several locations have now had to close, including the branches inWiesbaden,Bremen-VegesackandNaumburg. The loss figures in these businesses are too high to continue to be economically viable. The closures are part of self-managed insolvency proceedings that have now been running for a few weeks and initially resulted in a decline to 39 locations at the beginning of 2025 when branches in Hamburg and Dinslaken were closed. As Merkur reports, a clearance sale has already started in Dinslaken, offering discounts of up to 70 percent. However, similar sales campaigns are currently not known in the other affected branches.

The next steps for the renovation have already been initiated. The management remains in office, supported by external experts, including the restructuring expertEric Coordes, who emphasizes that employee dismissals should remain the exception. Despite the information about the closure, eleven employees have to give up their jobs, especially at the affected locations. Coordes remains optimistic that the restructuring measures will be evaluated and presented to the court and creditors early next year.

The background to the bankruptcy

The bankruptcy ofThe fabricis part of a worrying development within the entire German textile and clothing industry. According to an analysis by the Federal Statistical Office, there has been an increase in insolvencies in this sector for years. Companies are increasingly faced with competing online retailers and a changing consumer landscape. These challenges also affect the online shopThe fabricachieved, who also filed for bankruptcy. Some customers, such as consumer advocatesLower Saxony Consumer Center, therefore advise you to act quickly in order not to suffer financial losses.

The group of companiesThe fabric, which was founded 25 years ago, is made up of theStoff Stoffhandels GmbHand theHemkon GmbH. While Hemkon GmbH focuses on textiles and haberdashery, Stoffhandels GmbH focuses on meter goods and haberdashery. Last year a turnover of 13 million euros was achieved. Whether this foundation can continue to be laid remains to be seen. The employees and those responsible are all the more hopeful for a successful renovation and a brighter light at the end of the tunnel.