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Gotha mourns the loss of Moses”: business closed due to high costs
In Thuringia, more and more companies, including the “Moses” branch in Gotha, are closing due to high costs. Bankruptcies are increasing.
Gotha mourns the loss of Moses”: business closed due to high costs
Things are currently turbulent in Thuringia. Another branch has closed its doors forever. The “Moses” branch on Erfurter Straße in Gotha closed its doors at the end of May. The sales area is now empty, the shop windows are no longer visible. The reason for this closure is the high operating costs - not a lack of customers, as many might assume. This means that the location is roughly part of a negative development that is currently spreading across the Free State economy. During this time, the opening of new stores often remains only a glimmer of hope, while other companies are forced to their knees. The owner of the closed branch has not yet provided any information as to whether a successor has already been found for the retail space.
There is at least more positive news for the remaining “Moses” branch in the department store on Ekhofplatz. This remains open and still offers leather goods and luggage. However, children's clothing and sporting goods have been removed from the range. It remains to be seen whether this decision to reduce offerings can save the branch in the long term.
Economic challenges in Thuringia
The closure of “Moses” is just part of a larger problem. Thuringia is currently experiencing a wave of bankruptcies Day24 reported. The number of corporate bankruptcies rose by 7.5 percent in the first nine months of 2023 compared to the previous year. A total of 201 companies filed for bankruptcy, meaning more than 1,500 employees were affected. The creditors' expected claims amount to around 181 million euros, a sum that could place a heavy burden on the state's economy.
The construction industry in particular bears the brunt of the insolvencies, with 38 cases. Developments in housing construction, which is often viewed as the backbone of the regional economy, are particularly alarming. Service providers, car dealers and workshops also increasingly have to pay their bills, while private bankruptcies fell slightly over the same period.
The incidents show that more and more companies in Thuringia are getting into difficulties. While the closure of the “Moses” branch is sad for those affected, it is symbolic of the challenges that many companies are currently facing. Economic uncertainty makes it difficult to develop clear perspectives for the future. It remains to be hoped that the remaining businesses and companies in the region will get through the crisis with a good hand and that the Thuringian economy will soon blossom again.