Aktiv Schuh filed for bankruptcy at the district court of Berlin-Charlottenburg on July 23, applying for self-administration due to an impending insolvency as a result a sharp decline in sales stemming from the restrictions caused by the coronavirus pandemic.
After a promising start to 2020, sales dipped from March to July, and online sales failed to compensate for the slump.
While an improvement in sales can be expected once the restrictions are completely lifted, with tourists returning to Berlin and customers resuming their shopping habits, when this will happen is highly uncertain. And as a result the company sees no alternative than to apply for self-administration.The lawyer Torsten Martini from the Leonhardt-Rattunde law firm was appointed provisional administrator.
“Because of the lockdown and the resulting restrictions, we suffered huge sales losses that have not yet been recouped since the reopening. The conditions associated with the reopening, such as the obligation to wear masks and space restrictions, as well as the cancellation of all major events and, in particular, the absence of international tourism, which is essential for Berlin, have led to a significant drop in sales, especially in inner-city locations and shopping centers, ” said the company in a statement.
Aktiv-Schuh now aims to get back on track and realign itself to the market conditions in a stable and competitive manner, developing a sustainable long-term strategy. Business operations are expected to continue, with salaries secured.
Aktiv-Schuh is a family business with a 120-year history, run by the family’s third and fourth generations. The group operates around 70 stores across Germany, mainly under the names Aktiv Schuh, Shoe City and Hammer Schuh.