Large German shoe holding HR Group files for bankruptcy HR Group
16.05.2023 5022

Large German shoe holding HR Group files for bankruptcy

Unable to overcome the effects of the pandemic and the difficulties associated with the energy crisis, the German Hamm Reno Group (HR Group) has filed for bankruptcy, following its former retail company Reno, which filed for bankruptcy two months earlier, writes Worldfotwear.com.

Hamm Reno Group (HR Group), headquartered in Osnabrück, Germany, was the second largest footwear retailer in Germany, Austria and Switzerland. Retail stores were also opened in Central and Eastern Europe and the Benelux countries. Net sales were over 500 million euros. The group has developed along two lines: a traditional footwear retail business with approximately 500 RENO branded stores and a wholesale department serving more than 1800 retail outlets in 12 European countries.

As we wrote earlier, at the end of September 2022, HR Group sold its retail business to Reno Schuhcentrum along with its subsidiaries cm.sports GmbH and its collaboration partner GA Europe. However, attempts by the new owner to make the company profitable again were unsuccessful, as sales fell short of expectations. In March 2023, retailer parent company Reno Schuhcentrum and subsidiary Reno Schuh filed for insolvency.

Two months later, the HR Group also declared itself bankrupt, filing a bankruptcy petition for nine companies with the Osnabrück District Court.

The decision was prompted by the "still pending effects of the coronavirus pandemic, energy crisis and rising prices", as well as overdue receivables. The reluctance of consumers to spend money and, consequently, lower demand from retail customers had a direct negative impact on sales and liquidity.”

According to court documents, Christian Gerloff, a restructuring specialist, was appointed interim manager of the company in the insolvency case. Meanwhile, the business activity of the companies will not be limited, and the wages of approximately 750 employees of the group will be provided with insolvency benefits from the Federal Employment Agency until the end of June. It should also be noted that the bankruptcy did not directly affect the foreign divisions of the group in Poland, the Czech Republic, Slovakia, Romania and Hungary.

“Almost the entire shoe trade is now in crisis. However, systems business and logistics are proven business models in which HR Group has market-recognized expertise,” says Christian Gerloff. “Now our priority is to stabilize current business operations and explore all possible options that will provide a viable future for the company and its employees. It also meets the interests of creditors.”

 

 

Unable to overcome the effects of the pandemic and the difficulties associated with the energy crisis, the German Hamm Reno Group (HR Group), filed for bankruptcy, following its…
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