Insolvency shock: Hammer hardware stores in MV lose 3,900 jobs!

Insolvency shock: Hammer hardware stores in MV lose 3,900 jobs!

The news about the bankruptcy of the Hammer hardware store chain is causing worried faces in the industry and among employees. The company Brüder Schlau GmbH & Co KG from Porta Westfalica, to which the Hammer and Schlau chains belong, has applied for self-administration insolvency proceedings at the Bielefeld district court. This affects a large number of branches, including more than 180 Hammer specialist stores, 50 of which are located in Central Germany alone. In general, 3,900 employees are employed throughout the company, whose wages are covered by the insolvency benefit from the Federal Employment Agency up to and including August, as Nordkurier reports.

The background to the imbalance is complex. A year ago, the Hammer specialist store in Schwerin had to close, which the company explained as the result of “economic difficulties”. The 60 Schlau brand wholesale stores, which primarily supply craftsmen, are also affected. In Brandenburg, Hammer is represented in twelve cities, including Prenzlau and Schwedt. This means that the loss for many employees and the regional markets is significant.

What does bankruptcy mean?

However, the insolvency administrator has announced that all branches will remain open for the time being and that orders will be fulfilled without restrictions. Lawyer Yorck Streitbörger, who was appointed general representative, assures that operations will continue as normal while the management works together with those responsible to restructure the company.

This development is no coincidence. Bankruptcies in Germany rose sharply last year. According to IFM Bonn, a total of 21,812 companies filed for bankruptcy in 2024, which means an increase of 22.4% compared to the previous year. The reasons for this increase are complex and go back to current and previous crises. Companies that have been operating on the market for years are particularly affected.

The impact on employees

The employees of the affected Hammer branches fear for their future. Currently, their salaries are secured by insolvency money until the end of this month. However, it remains unclear whether branches will have to be closed or employees will have to be laid off as part of the restructuring process. This creates a tense mood among employees who hope for stability and the continuation of their jobs.

The situation once again illustrates how fierce competition is in the retail sector and how companies can falter due to economic difficulties. It remains exciting to see how Hammer and the Schlau markets can work their way out of this crisis and what strategies will be implemented to stabilize the company beyond the current phase.