Insolvency drama: 66 Hammer branches close, thousands on the verge of extinction!

Insolvency drama: 66 Hammer branches close, thousands on the verge of extinction!

In a significant turnaround for the German retail landscape, Brüder Schlau GmbH & Co KG from Porta Westfalica has decided to close 66 branches of the Hammer furniture chain. The application for insolvency under self-administration was submitted to the Bielefeld district court in June of this year, with the company having around 3,900 employees. This decision follows the closure of 50 of the approximately 60 specialty stores that previously operated under the Schlau name. The closures affect locations in several federal states, including North Rhine-Westphalia, Hesse, Lower Saxony, Thuringia and Saxony. The markets have reportedly already closed on October 1, but official confirmation is still pending. The branch in Delmenhorst could also close at the end of the year, while the future of the affected locations remains uncertain.

The challenges for the Schlau brothers are not new. The company is not alone in the storm of bankruptcies. In 2023, around 110,200 bankruptcies were recorded in Germany, reflecting a worrying trend in the retail and service sectors. The current insolvency of Brüder Schlau joins a large number of insolvent companies, including big names such as Galeria Karstadt Kaufhof. Loud Statista North Rhine-Westphalia is particularly affected - the highest number of bankruptcies were registered in this state.

Restructuring and rescue of the Hammer branches

However, there is positive news to report: an investor consortium called ReThink has agreed to take over 93 Hammer branches. This means that around 1,200 jobs can be secured, while the closures of the 66 other stores were regretted. The new company, Hammer Raumstylisten GmbH, will in future focus on the marketing of interior design craft services and may continue to run the business under a different name. The management emphasizes that negotiations about social plans and reconciliation of interests with the works councils are already underway in order to provide the affected employees with the best possible support. A legally binding agreement on the takeover of the markets has already been reached, which brings some hope to the seemingly turbulent situation.

The company's bankruptcies are a clear indicator of the difficult economic situation in which many retailers find themselves. Many companies have to reorient themselves, adapt their strategies and try to assert themselves in an increasingly digital world in order to remain competitive.

While the branch closures are unsettling employees and customers, it remains to be hoped that Hammer's new concept can gain a successful foothold. Because changes in the trading landscape are often the first step towards renewed stability. The future of Brüder Schlau GmbH will be crucial in the coming months in order to meet the changing requirements of the market.

The challenges in the industry are great. Nevertheless, the takeover of the 93 stores by ReThink shows that there are always ways out of the crisis - perhaps you will soon find a new, attractively furnished Hammer store in Cologne.

For further information on developments in the insolvency and retail landscape, the reports can be found at Mercury and n-tv can be viewed.