In recent times, numerous apparel brands across the globe have filed for bankruptcy protection. Following the suit is the Germany-based subsidiary of Promod – Promod Germany GmbH, which too has applied for the same. As per media reports, the Court has also accepted the request, granting the German subsidiary of the French fashion group three months to submit a fresh restructuring plan.
Andreas Lobmeyr, Head – Promod Germany said, “The growing competition from numerous international fashion companies and increasing pressure on discounted prices within the fashion industry have led to declining sales. In addition to that significant changes in buying habits of customers show a transition from stationary trade to online trade,” adding, “Discussions with our business partners and owners are currently running and show that the objectives set by us are realistic and achievable.”
Also Read – Aéropostale finally files for bankruptcy protection
The French parent of Promod SAS reportedly has a restructuring plan named, CAP 2017 which includes the renewal of the branches in foreign markets. Earlier in April, the company said that it will close around 180 underperforming stores worldwide. Promod is, actually, a chain of women’s fashion stores, with more than 1,000 sale points and around 5,000 employees in about 50 countries.
