Pepco Germany plans to reorganize its store network in Germany as part of its restructuring process, the company announced in a press release. Pepco Group has pledged its support for this process.
Pepco Group NV is seeking to reorganize its German retail chain. To this end, Pepco Germany GmbH has filed for bankruptcy under Article 270 of the German Insolvency Code with the District Court of Berlin-Charlottenburg.
“The aim of the proceedings is to adapt Pepco Germany to the German market and better prepare it for potential success in the long term. All stores will remain open until further notice and will continue to be stocked with the latest collections. The Pepco Group, as a shareholder, has declared its readiness to support the restructuring process and secure financing for the proceedings,” the statement read.
Pepco Germany operates 64 stores across Germany, with a particular focus on Eastern Germany. Pepco stores offer clothing and everyday items. After entering the market in 2022, the German chain encountered growth challenges and is currently generating losses.
Pepco Germany currently employs a total of approximately 500 people.
The current management board will be supported in the proceedings by Christian Stoffler from the Munich law firm Gerloff Liebler Rechtsanwälte, who has been appointed Chief Restructuring Officer (CRO).
The court appointed lawyer Gordon Geiser, partner at the law firm GT GreenbergTraurig LLP in Berlin, as the temporary bankruptcy trustee (Sachwalter) in the proceedings.
“Over the past 20 years, the Pepco Group has proven its retail concept and product range to be successful in Europe. We therefore see good opportunities to reorganize our store network in Germany so that it can thrive despite the challenging situation in the German retail market. The company's ongoing reorganization process gives us the ability to quickly implement the necessary measures,” said Christian Stoffler, Director of Product Development (CRO).
The Pepco Group opened its first stores in Poland in 2004 and has since expanded its operations across Central, Eastern, and Western Europe. Currently, the Pepco Group has nearly 4,000 stores and employs over 31,000 people in 18 European countries. Pepco is registered in the Netherlands, and its shares are listed on the Warsaw Stock Exchange. (PAP Biznes)
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