Semler files for bankruptcy
Due to financial difficulties, the oldest German shoe factory Carl Semler, manufacturer of shoes under the Semler brand, filed an application for restructuring within the framework of the local government with the Pirmasens District Court on January 16, 2025. The reason for this decision was the economic difficulties that followed a sharp decline in sales, writes shoez.biz.
The decisive factors were “a large-scale drop in sales and non-payments, which we were unable to compensate for despite intensive countermeasures,” the company noted.
The overall economic situation, especially in the footwear industry, has worsened significantly due to the recession, changes in the market and rising costs. This has led to a significant reduction in the number of customers due to a large number of bankruptcies in the footwear trade.
External factors such as the COVID-19 pandemic and ongoing geopolitical conflicts have proven particularly strong. The shoe factory has tried to mitigate the decline in sales by cutting costs, finding new sources of income and taking out loans. However, this has not been successful.
Currently, the Semler shoe factory employs 250 people. Production takes place in Germany (70) and Hungary (180). From January to March, the factory workers' wages will be covered by bankruptcy benefits. From April, the Carl Semler shoe factory will again take over the payment of wages. The daily production volume of shoes is around 1000 pairs.
Operations will continue in full. According to the bankruptcy petition, Semler's suppliers and business partners are to be paid/delivered in full from future business relationships.
The general representative for the company's restructuring procedure is restructuring expert and lawyer Lukas Eisenhut from the law firm Abel and colleagues, who believes that: "Thanks to self-management, Semler has every chance not only to survive this stage in the company's 162-year history, but also to emerge from it stronger." The goal is "to preserve as many jobs as possible."
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