Due to insolvency, the popular fashion chain is forced to close all its branches across the country, aussiedlerbote.de reports.
Now everything is finally over and fashion chain Orsay closes its doors to German citizens at the end of June.
The effects of the pandemic will be felt for a long time to come.
What is the reason?
Popular chain of fashion stores Orsay has been experiencing financial difficulties since the end of last year. At the time, it was said that the main reason was Coronavirus and the declining demand for holiday wear. So the company filed for bankruptcy by way of self-management and actually wanted to find a way out of a difficult situation.
But now it’s clear: in just a few weeks Orsay will become a thing of the past in the German fashion trade.
Is it because of the pandemic and the war?
“The work of the Orsay store will be closed at the end of June. It will end no later than June 30 and will affect all 197 branches,” said Wolfgang Weber-Tedi, spokesman for the company. “Back in March, we made a decision to cease operations, during which all employees, landlords and service providers were notified,” Weber-Tedy continued.
At the beginning of the war in Ukraine, “we actually had a restored branch network.” 67 branches were closed during this “reorganization of the branch network in the course of bankruptcy in the self-government regime.”
As part of the reorganization, brand representatives worked on a decision to continue operations. In the course of this, numerous stakeholders were involved in the negotiations.
“And then an untold war got in the way, and our liquidity outlook deteriorated significantly,” the spokesman explained.
This war has significantly worsened investors’ appetite for risk. “In the end, no agreement was found that would satisfy all parties,” Weber-Tedy explains.
Without external funding, the Orsay network can no longer do anything in the current situation.
Approximately 1,200 employees have already been notified in March of the layoffs, as well as all tenants.
At present, Orsay branches in Nuremberg, Erlangen, Ansbach, Würzburg, Aschaffenburg and Bayreuth are still open in Franconia. But only until the end of the month.