Hammer markets in Prenzlau insolvent: What does that mean for customers?

Hammer markets in Prenzlau insolvent: What does that mean for customers?

In a surprising step, Brüder Schlau GmbH & Co KG, the parent company of the “Hammer” and “Schlau” specialist stores, has filed for self-administration bankruptcy. The proceedings were initiated at the responsible district court, but this was not entirely unexpected for many observers. The franchise partner of the Hammer markets in Prenzlau and Pasewalk, Sven Krüger, made it clear that he did not find the development surprising. His view of the situation is shaped by current market conditions that are making it increasingly difficult for large chains to assert themselves.

At the end of 2024, 24 stores across Germany were closed. In spring 2025, the employees there would no longer be able to enjoy a regular working day. Those responsible were particularly concerned about the Prenzlau market, which covers an area of ​​2,200 square meters. The lease for this location was terminated last year on September 30, 2025. “The location is no longer up to date,” says Krüger, who, as an independent managing director, would like to continue to maintain the specialist stores in Prenzlau and Pasewalk.

Market analysis and staff reductions

Factors such as declining sales and competition from Internet providers are making the market difficult for stationary retailers. According to Krüger, the ratio of box office sales to order sales has reversed. The televisions are disappearing from the shop windows - the trend is towards smaller specialist stores. However, negotiations with the landlord about a possible division of the space into two markets are dragging on.

In addition, the Brothers Schlau group of companies is planning an organizational separation of the Hammer and Schlau brands, which will probably result in further job cuts. A company spokesman confirmed these plans, but did not want to provide detailed information about the affected locations or contract terms. The closure of the Oehrkstrasse location, which the company has not yet commented on, could be particularly painful. The administration is also affected by the cuts, and a social plan is being developed in collaboration with the works councils to protect the interests of the employees during this restructuring phase.

Bankruptcies as part of the market

The explosiveness of these developments is underlined by the general trends in the German market. In 2024, a total of 21,812 companies filed for bankruptcy in Germany, which means an increase of around 4,000 proceedings compared to the previous year. Despite the increase, bankruptcies are a comparatively rare form of company closure, so the overall economic situation currently gives little reason to give the all-clear. More and more companies are struggling with the aftereffects of crises.

Another challenge is that over 23,000 formerly self-employed people have had to file for bankruptcy due to debts. The figures make it clear that despite the difficulties facing the retail landscape, many entrepreneurs are still holding on to their business and are looking for new ways to remain economically active. For example, Krüger has announced that it will fulfill all current orders and at the same time look for a new location in Prenzlau.

The clearance sale will also begin on June 30th at the Hammer specialty store in Prenzlau, which is likely to attract many customers. The focus remains on how the situation develops and whether the Pasewalk location, which remains economically viable, can be stabilized.

Overall, it is a challenging time for Brüder Schlau GmbH & Co KG, but also for many other companies in Germany. However, with the right strategies and a good hand, new opportunities can be seized even in times of crisis. Future developments remain to be seen.

For more information, see reporting from Northern Courier, Head Topics and IFM Bonn.