The insolvent German fashion chain Adler has received an offer from the Berlin logistics group Zeitfracht to take over the company and supply it with the urgently needed fresh capital.
Adler Modemärkte has announced that the negotiations are “in advanced stages” for a binding takeover offer that could come into effect after the bankruptcy proceedings are expected to open in early July.
According to the company, the insolvency plan will stipulate a capital decrease in form of a reduction of the share capital of Adler Modemärkte AG to zero and an subsequent injection of new equity in the form of a capital increase by Zeitfracht, which thereby will become Adler’s sole shareholder. Thus, the existing shares of the company will lose their value entirely and with the capital reduction becoming effective, the company’s shares will also be delisted.
The over 50-years-old fashion chain filed for bankruptcy in the middle of lockdown in January in order to reorganize itself under self-administration. The company with around 150 branches and 3,200 employees attributed the bankruptcy to the months of forced closings of shops in the coronavirus pandemic and the associated slump in sales.