The Bahner Group has agreed with judicial authorities on a self-administered insolvency plan under which about 25 percent of the current retail network will be closed. Among them are 17 Leiser stores and 16 Schuhhof stores. The number of staff will be reduced, too. About 400 employees are affected, corresponding to 290 full-time employees.

The large German shoe retail group, which is partly owned by Josef Seibel, says that its operative business is secured and all in-house processes are aligned to the requirements of the legal proceedings, established by the municipal court of Augsburg.

In order to maintain its operations, the Bahner Group arranged debtor-in-possession financing with suppliers and a consortium of banks. The executive board, consisting of Steffen Liebich, Harald Neisser and Frank Pohl, has developed restructuring programs. The goal is for creditors to agree on the group's insolvency plan, which is about to be finished. The executive board of the Bahner Group hopes to complete successful negotiations at the end of July.

In the framework of the restructuring of the shoe retail chain, the most important measures are ethe reorganization of all processes; the closure of unprofitable stores; and the investment in the branch network, in particular the construction of stores, modern cash register systems and marketing.