Liwe Española was the Murcia-based owner of the Inside low-cost fashion chain, with 336 stores across Spain, Portugal, and Italy at the start of 2025. It was listed on the Madrid Stock Exchange and had €120 million in annual revenue in 2023. The company had expanded aggressively in the post-COVID period, opening stores and building inventory, but the market turned faster than expected.
By April 2025, Liwe had entered pre-insolvency with €57.61 million in debt. It presented a restructuring plan in November 2025 backed by creditor banks CaixaBank, Caja Rural Central, and Caja Rural Granada, plus a favorable report from court-appointed restructuring expert Auren. But the Mercantile Court of Murcia rejected the plan, throwing the company into legal limbo. Revenue had dropped to €42.4 million in H1 2025 with an €18.3 million loss — nearly nine times the previous year's loss.
On January 19, 2026, Liwe filed for voluntary insolvency, describing the court's decision as leaving the company in 'desamparo' (helplessness). It had already closed more than 90 stores in 2025 and laid off 29% of central services staff. The company hopes to reach a creditor agreement to avoid liquidation and preserve the remaining 246 stores and all jobs.
Filing for insolvency was the only door left after the court blocked the plan, despite €109M revenue and no unpaid supplier, tax, or worker debts.
Liwe expanded aggressively post-COVID, adding stores — when consumer spending shifted, it was overextended with €57.61M debt and revenue in freefall
The company did everything right — a restructuring plan backed by banks and a court expert — but the court rejected it, forcing insolvency despite having no unpaid debts to suppliers, tax, or workers
Revenue dropped from €120M to €109M while H1 losses multiplied ninefold — the company closed 90+ stores and cut 29% of central staff, but could not restructure fast enough to escape the debt spiral
A restructuring plan with creditor support is not enough if a court disagrees. When the legal system blocks your exit, the only door left is insolvency.
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