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The encyclopedia · Finance & Accounting · Financial decision · 2024

Aachener, the German fashion house, is wound down after an overextended expansion

German fashion chain Aachener, at six former Galeria sites, has its insolvency opened in Mar 2024 and shuts all branches after no investor is found

aachener – das Modehaus · 2024-03-01

What happened

aachener – das Modehaus was a German fashion retail chain operating clothing houses across the country, focused on women's and men's fashion in the premium price segment. It was a relatively young chain that grew quickly by taking over space in former Galeria Kaufhof locations after that department-store group withdrew.

The district court in Dortmund opened insolvency proceedings on 1 March 2024. The chain had taken on six former Galeria locations, and the insolvency administrator first planned a continuation in lightly changed form, even opening four new sales branches. But the market environment stayed difficult, customers held back, and no investor could be found.

The business was wound down: two outlet locations in Dortmund and Frankfurt had already closed at the end of February 2024, and the remaining branches were shut after the decision to end the business was made on 26 June 2024. The founder and former managing director, Friedrich-Wilhelm Göbel, had gone missing and was wanted on an arrest warrant over allegations of concealment of assets, and the company was linked to a suspected fraud case.

Why it happened

  • The chain expanded aggressively into six former Galeria locations, taking on more space than the market would support
  • A difficult retail environment and customer restraint meant the new footprint never generated enough sales
  • No investor was found to carry the business forward, and the founder's flight and the fraud allegations left the company without a way out
What it costInsolvency Mar 2024; all six branches shutcostly

The lesson

Growing into a bankrupt competitor's empty stores only works if the customers follow. Renting the space ahead of the demand made the expansion the cause of the failure.

Aftermath

Insolvency proceedings were opened by the district court in Dortmund on 1 March 2024. Two outlet locations closed at the end of February 2024, and after no investor could be found the business was formally wound down on 26 June 2024, with all remaining branches shut and rents terminated by 30 September 2024. Founder Friedrich-Wilhelm Göbel was wanted on an arrest warrant over allegations of concealment of assets.

Sources

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