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The encyclopedia · Strategy & Leadership · Strategic decision · 2023

Hallhuber — German womenswear chain closed all 130 stores after second insolvency

Hallhuber filed for insolvency in May 2023 and closed all ~130 stores by October 2023 — 1,200 employees lost, €170M in annual revenue vanished

Hallhuber · Change Capital Partners · 2023-05

What happened

Hallhuber was a German women's outerwear retailer founded in Munich in 1977. It grew into a chain of approximately 130 stores across Germany, Austria, and Switzerland, selling trend-driven premium womenswear. In its last full fiscal year, Hallhuber generated roughly €170 million in gross revenue and employed about 1,200 people. In September 2009, the company was acquired by Change Capital Partners, a London-based private equity firm.

The retailer first filed for insolvency in 2021, struggling with the impact of pandemic lockdowns on physical fashion retail. It was restructured and continued operating, but the underlying problems — a large store network with high rents, competition from fast fashion and online pure-players, and changing consumer habits — were never resolved. In May 2023, Hallhuber filed for insolvency for the second time in two years, this time in self-administration at the Munich District Court.

The company searched intensively for an investor willing to take over the chain as a going concern. Despite negotiations with multiple interested parties, no buyer emerged. By the end of October 2023, all Hallhuber stores had closed permanently. The online shop was also shut down. The entire workforce of approximately 1,200 employees was made redundant. The Hallhuber brand, which had been a fixture of German high-street womenswear for 46 years, disappeared from the retail landscape entirely.

Why it happened

  • A chain of 130 stores with high-street rents could not compete with fast-fashion on price, or with online pure-players on range and convenience — mid-market womenswear was squeezed from both sides
  • The 2021 insolvency was a warning the model needed change, but the rescue only postponed the same problem — rising costs and shifting habits permanently reduced demand for mid-market womenswear retail
  • The fact that no investor emerged despite intensive search — not even at a distressed price — showed the market had already moved past the mid-market multi-brand womenswear chain model
  • Change Capital Partners since 2009 did not invest enough in e-commerce or brand differentiation to survive fashion retail's structural shift
What it costAll ~130 stores closed, 1,200 jobs lostcostly

The lesson

A second insolvency within two years is not bad luck — it is proof the first rescue did not fix the model. Mid-market specialist retail needs scale or differentiation, not a second court rescue.

Aftermath

Hallhuber filed for insolvency at the Munich District Court in May 2023, its second in two years. It searched for an investor but no offer materialised. By end of October 2023, all ~130 stores across Germany, Austria, and Switzerland closed, along with the online shop. All 1,200 employees were let go. The brand, founded in Munich in 1977, ceased to exist. The case exemplifies the structural crisis facing mid-market womenswear chains in Europe, squeezed between fast fashion and online.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →