By order of March 1st, 2019 Hechingen District Court (Amtsgericht) appointed restructuring expert Jochen Sedlitz of the law firm Menold Bezler as provisional insolvency administrator of the assets of Vidrea Deutschland GmbH.
Vidrea Deutschland GmbH is part of Dutch Victory & Dreams Group, headquartered in Breukelen near Amsterdam. Last year, the group inter alia took over the German branches of clothing chain Charles Vögele. In addition, a new store concept was launched under the brand name Miller & Monroe. Vidrea operates more than 163 stores in Germany and has around 1,800 employees. The Dutch stores are not affected by the insolvency.
Sedlitz began work immediately. Together with his team and the management headed by Alexander (Lex) Hes, the first step is to analyse the business operations and the reasons for the insolvency. The goal is to develop a restructuring plan that saves as many jobs and stores as possible. “We will establish an overview and stabilise business operations as quickly as possible. Initial measures have already been put into place. Business is set to continue as usual without restriction”, said Sedlitz.
For three months, the provisional insolvency administrator will pre-finance the employees with insolvency payments from the Federal Employment Agency. Thus, salaries are secured until June. As Sedlitz stated: “Being able to operate for three full months without salary costs will give us sufficient time to implement a plan.” Customers will not be affected by the application for insolvency either: “Operations are set to continue without restriction.
Our customers will continue to receive full service. We will emerge from this process with renewed strength and capabilities and therefore ask that our customers continue to buy from Miller & Monroe“, says managing director Lex Hes.
According to Hes, the insolvency became necessary due among other things to the fact that important financial commitments from the seller Sempione Fashion AG (previously Charles Vögele Schweiz) were not fulfilled as a result of the insolvency of Vögele Group last year. “The Konzept Miller & Monroe is good and viable. We have seen that in our stores outside Germany and from the preceding year. The financial position of the company formerly known as Charles Vögele GmbH, to which the German stores belong, was significantly worse at the time of the takeover by Victory & Dreams Gruppe than described”, according to Lex Hes.
Jochen Sedlitz is a highly experienced restructuring specialist. The multifaceted international ties mean the proceeding is particularly complex for which Sedlitz and the firm Menold Bezler have the necessary skills and knowledge.
Sectors and Solutions: Reorganisation and Restructuring