Less than three months after filing for insolvency, Sioux GmbH successfully underwent a restructuring that will allow the wholesale business to remain part of Sioux Group.
The company, which deals with shoe retailers for the Sioux Group, is being taken over by Sioux Schuh GmbH, a newly established subsidiary of Sioux Holding GmbH, the group said.
All of the company’s business operations have been transferred to the new subsidiary, resulting in the preservation of all jobs and of the Walheim site.
On June 16, Sioux GmbH filed for self-administration proceedings under German insolvency legislation, as plummeting department store sales generated by coronavirus-related lockdowns and market uncertainty drove the group’s wholesale division off the rails.
The move aims to enable the unit to draw up a restructuring plan guaranteeing a sustainable future. Sioux Group’s five other companies, including the e-commerce subsidiary Sioux Online GmbH, were not affected by the bankruptcy.
In the bidding that followed the insolvency filing, Sioux Group submitted the most attractive offer and the most convincing proposal to creditors, said Thomas Rittmeister of the law firm Reimer Rechtsanwälte, who served as administrator in the preliminary proceedings and is currently the insolvency administrator.
A purchase agreement has already been signed in Frankfurt. The parties did not disclose the purchase price.
“We are pleased to be able to maintain the business operations of Sioux GmbH as an integral part of the group. We will continue to follow our strategic path, i.e. pushing ahead with digitization […] and further focusing on the end customer, while at the same time remaining a reliable partner for specialist retailers. We are well aware that the market environment will remain challenging in the times ahead. However, we now assume that the shoe retail sector has weathered the worst months and that the market has found its footing,” said Sioux Group’s chief executive, Lewin Berner.
Sioux Group was established in 1954 in the town of Walheim, in the southern German state of Baden-Württemberg. Sioux GmbH employs 35 full-time workers and generated sales of around €24 million in 2019.