German trouser specialist Gardeur, whose brands include Atelier Gardeur and Thomas Rath, has vowed it has a future after the group filed for insolvency in the court of Mönchengladbach, Germany on Thursday. Previous attempts to secure investors had remained unsuccessful.
The company has started insolvency proceedings for four limited companies within the group following cash flow problems caused by a bounced credit agreement with a Tunisian bank amidst a tumultuous economic situation in the country.
Gardeur’s management, however, has made assurances that the formal insolvency will put the company on a solid and sustainable footing. It is set to continue with its restructuring agenda, which it embarked on four years ago and which had shown positive results, with the company having seen growth in turnover over the last three years and having closed the financial year 2015 / 2016 with another plus.
“Gardeur has a future. The insolvency will allow us to overcome the current cash flow problems and to safeguard our head office and production base in Mönchengladbach,” says Gerhard Kränzle, CEO of Gardeur Group.
“In order to position Gardeur competitively in the marketplace again long term, a decisive and financially sound restructure through a controlled insolvency programme is necessary. The aim is to continue the restructuring process that we have already been implementing and to further adjust Gardeur to the ever changing trading conditions of the clothing sector,” he adds.
The management board as well as all staff and international agents remain in place, with the brand aiming to fulfil any outstanding orders and to press ahead with the production of its a/w 18 collection.