WeilheimThe fashion chain K & L threatens bankruptcy. The management has applied to the district court Weilheim a protective screen, as the company announced on Wednesday. The salaries of the 1200 employees are secured until the end of the year.
A protective screen procedure is in the insolvency order a renovation in own direction. A year ago, CFO Jens Bächle had bought the company, now obviously the money is missing. K & L currently operates 57 branches in southern Germany and generated sales of around 116 million euros in 2017. September was "a disaster" in the market as a whole, Bächle said.
In addition to past mistakes, the manager was responsible for major changes in the fashion industry – including competition from online retailers. "In order to permanently position K & L competitively and to be able to withstand such current market developments, a restructuring process is needed through a controlled insolvency procedure." Deficient branches with no prospect of improvement are to be closed. In addition, the company wants to seek investors.